Bangladesh Garments Accessories & Packaging Manufacturers & Exporters Association (BGAPMEA), a national chamber of garment accessories and packaging suppliers of the country, has forwarded six main demands to the government to ensure good business for the segment this year.
Md. Abdul Kader Khan, President of BGAPMEA, listed these demands. The six points are a reduction in corporate tax for accessories and packaging to 12 per cent as against the current 35 per cent; allocation of 5 per cent of cash incentives; imported raw materials to be unloaded using ‘free time’ facilities at Chittagong/other land ports; single-digit interest rate for bank loans; quicker hand over of Utilisation Permission (UP) to importers at port; and implementation of 0.70 per cent source tax for the next five years.
Khan said in-spite of the lack of support from the government and other trade associations, the accessories and packaging sector has reported $6.70 billion in revenue during the 2016-2017 fiscal. Of the total, items valued at $1.12 billion were exported directly to the Netherlands, South Africa, the Middle East, Italy, Germany and Austria. The accessories and packaging sector is a shadow exporter industry that bagged a business worth of $6.70 billion in 2016-17. “Constant pressure from buyers to minimise product cost of RMG manufacturers is also pressurising accessory manufacturers to minimise cost, so our profit margin has reduced to a considerable level.”
He also said that to bring in new business for this sector in 2018 the government must take necessary measures to resolve those six demands. “We are hopeful that 2018 will bring good business to the sector. Though devaluation of Taka against USD has lowered our profit margin, we are still hopeful if products order grows and the government supports us, we can recover such losses,” Khan asserted.