Bangladesh BGAPMEA outlines the sector’s demands in the FY25 budget proposals

There are currently restrictions on the availability of imports for non-duty plants compared to plants located in designated tariff zones.

The Bangladesh Association of Manufacturers and Exporters of Garments, Apparel Accessories and Packaging sought to provide a level playing field for both duty-bound and non-duty-affected enterprises, as well as a three-year import availability period for the accessories sector. She demanded a tax reduction from 1% to 0.25% and a fixed tax rate for at least five years.

These zones, often run by government authorities, offer certain benefits such as tax breaks and simplified customs procedures. Enterprises operating in these zones are considered bonded establishments.

A three-year import availability period for the accessories sector would allow manufacturers to more effectively manage their raw material needs and avoid delays caused by slow audits, which may be a particular problem for companies not subject to tariffs, he said.

These demands are included in the association’s fiscal year 2024-25 budget proposals.

The association has proposed reducing the tax on its products from the current 1 percent to 0.25 percent, in line with previous government initiatives to encourage exports. Domestic media reported that he also demanded a fixed tax rate for at least five years.

The association urged the government to eliminate the requirement for bank guarantees on imported goods, which can pose a financial burden and cause delays.

It also proposed exempting all local purchases by export-oriented industries from the existing 15 percent value-added tax to reduce production costs, and banning the import of ready-made clothing accessories and packaging products on deposit.

Fiber2Fashion Information Desk (DS)