Bangladesh Garment Accessories and Packaging Manufacturers and Exporters Association (BGAPMEA), has demanded the same facilities as the readymade garment (RMG) industry in the proposed budget for FY20-21, urging the government to reduce the corporate tax rate to 12 per cent. Currently, the apparel sector pays 12 per cent corporate tax, while accessories and packaging makers make 35 per cent tax. This backward linkage industry for the apparel sector also urged the government to keep source taxes unchanged at 0.25 per cent instead of the proposed 0.5 per cent for FY20-21.

According to BGAPMEA data, there are about 1,700 small and medium accessories and packaging makers, who are capable of providing 95 per cent supply of accessories products to the country’s $34 billion apparel industry and other export oriented packing industries, including frozen foods and pharmaceuticals.

Though the government has announced a 1 per cent cash incentive in the proposed budget, the RMG's backward linkage industry is not getting it.. BGAPMEA also urged the government to include the sector for cash incentives as it exports its goods directly as part and parcel of exports themselves.

In the last fiscal year, the sector contributed over $7.5 billion to the exports of the apparel sector, of which nearly $1 billion came from the direct export of accessories goods.