The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) expressed disappointment, stating that the proposed budget for the fiscal year 2023-24 lacks specific directives for the country's textile and clothing industry.
BGMEA highlighted the budget's failure to address important proposals, including reducing source tax and allocating incentives. Hassan emphasized the challenges faced by the sector due to the Covid-19 aftermath and the decline in global apparel demand caused by the Russia-Ukraine war. BGMEA called for a fixed source tax of 0.50% and a 10% cash incentive on non-cotton apparel exports to attract investments, boost exports, and create jobs.
BGMEA urged the government to reconsider the corporate tax rate, reduce the source tax on the Exporter Retention Quota Fund, and withdraw the 10% tax on cash incentives.
They also requested tax and VAT exemptions for recycling processes and products in the local industry.
While acknowledging some positive measures, such as tax reduction on container imports, BGMEA urged the government to provide clearer guidance to support the industry in the upcoming fiscal year.