5pc cash incentive demanded for RMG

Country’s apparel and textile sector leaders on Monday demanded five per cent cash incentive on export prices of readymade garment (RMG) products for next five years to remain competitive in the global market saying that RMG manufacturers were facing a precarious situation due to low prices of products, reports BSS. 

At a pre-budget press conference at Amari Hotel in the city, the leaders of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), and Bangladesh Textile Mills Association (BTMA) said that considering the special situation of the sector, the government would have to take special measure for shake of the employment of vast number of population. “If we consider only employment generation, the readymade garment sector needs incentive as the sector is facing a transitional period,” BGMEA president Rubana Huq told journalists at the press conference.

She said that manufacturers have been faced continues pressure for low prices from the buyers and survival of many small factories are in stake. “If the government allows five per cent cash incentive against the Freight on Board (FOB) price of garment products for next five years the sector would rebound,” she added.

Rubana urged the government to remain source tax unchanged at the rate of 0.25 per cent and to reduce the corporate tax to 10 per cent from exiting 12 per cent.

The BGMEA president demanded special allocation in coming budget for loan rescheduling facility for the garment and textile businesses.

She also urged the government to double the tenure of rescheduling for default loans.