Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) in its budget proposals has demanded 10 per cent cash incentive against using local raw materials and 4.0 per on imported ones for the next two years. Global demand is expected to decline 40 per cent resulting in price fall of products hence, it would be difficult for exporters to sustain. Also, due to the ongoing Coronavirus outbreak, many factories would close down. Hence, BKMEA also recommended the government to provide a guideline for exit in the upcoming budget. The association also demanded continuation of the existing 0.25 per cent source tax for the next year and withdrawal of 5.0 taxes on cash incentive.
Other demands include: duty-free import of the industrial racking system (IRS), industrial thermostat dehumidifier and other safety equipment. Regarding the IRS, the trade body expects to get more work orders from global buyers if they can set up international standard compliant factories and bonded ware house facility. According to it, a modern IRS helps to store huge quantity of products at a short space and to find them out easily in a bonded ware house.
