Bangladesh garment exporters have urged the government to maintain source tax at 0.5 per cent for the next five years. Faruque Hassan, President, BGMEA, warned, changing source tax rate would hamper the countries’ garment sector. He also urged the government to provide a 10 per cent cash incentive on exports of manmade garments. He said, the global fashion industry has been increasingly adopting garments made from manmade fibers due to their eco-friendliness, functionality and durability. However, Bangladesh has not yet warmed up to manmade fiber that make up 78 per cent of global apparel market while cotton made garments occupy the remaining 22 per cent.

Around 74.14 per cent of Bangladesh's garment export earnings still come from cotton made garment items, Hassan added. A nationwide trade organization of garment manufacturers in Bangladesh, the Bangladesh Garment Manufacturers and Exporters Association or BGMEA is located in Dhaka and plays a pivotal role in the country's earning sector of foreign trades.