Ready-made garment industry wants policy measures to overcome hard situation | The Business Standard
Skip to main content
  • Latest
  • Economy
    • Banking
    • Stocks
    • Industry
    • Analysis
    • Bazaar
    • RMG
    • Corporates
    • Aviation
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
The Business Standard

Wednesday
June 11, 2025

Sign In
Subscribe
  • Latest
  • Economy
    • Banking
    • Stocks
    • Industry
    • Analysis
    • Bazaar
    • RMG
    • Corporates
    • Aviation
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
WEDNESDAY, JUNE 11, 2025
Ready-made garment industry wants policy measures to overcome hard situation

RMG

Jasim Uddin
02 October, 2019, 09:40 pm
Last modified: 02 October, 2019, 09:49 pm

Related News

  • Port store rent exemption only for RMG importers will create disparity in other industries: DCCI
  • Budget measures to benefit RMG industry: BGMEA
  • BGMEA election at 2 centres in Dhaka, Ctg underway
  • How trade union became a win-win for workers, owners at Babylon Garments
  • Apparel leaders, global buyers, regulators discuss overlapping audit challenges, compliance requirements in high-level meeting

Ready-made garment industry wants policy measures to overcome hard situation

Individuals connected with the industry have drawn attention to the dilemma the ready-made garment sector faces

Jasim Uddin
02 October, 2019, 09:40 pm
Last modified: 02 October, 2019, 09:49 pm
File Photo: Employees work in a factory of Babylon Garments in Dhaka January 3, 2014. Reuters/Andrew Biraj
File Photo: Employees work in a factory of Babylon Garments in Dhaka January 3, 2014. Reuters/Andrew Biraj

Bangladesh's ready-made garment industry has of late been going through some challenging times. As a way of dealing with the situation, ready-made garment exporters have come forth with the demand that some policy measures be initiated for the industry to emerge on to an easier plane.  

Individuals connected with the industry have drawn attention to the dilemma the ready-made garment sector faces, with production costs and workers' minimum wages going up and, paradoxically, orders in a state of decline.

Compounding the situation is the fact that the industry has been losing its capacity in comparison with the garments sector in countries regarded as areas of competition for Bangladesh. These countries have devalued their currencies and provided more in terms of cash incentives and other policy support to their ready-made garment sectors.

The Business Standard Google News Keep updated, follow The Business Standard's Google news channel

Speaking to The Business Standard, Rubana Huq, president of Bangladesh Garment Manufacturers & Exporters Association (BGMEA), said: "The overall condition of the industry is not good. We have been going through closures almost every week. Costs have gone up, orders are dwindling, the minimum wage has gone up. Countries in competition with us have devalued their currencies, and announced incentives, including a recent 4 percent incentive announced by India."

It is to be recalled that on September 12, the BGMEA president sent a letter to the principal secretary to the Prime Minister asking for directives from the National Board of Revenue (NBR) regarding measures towards ensuring a growth in the export of ready-made garments.

The letter also pointed out that the prime minister had issued some directives on September 4 at a meeting with representatives of the ready-made garment sector regarding steps aimed at helping the apparel sector to overcome the problems it faces at present.

The letter from the BGMEA chief was forwarded by Principal Secretary Md Nojibur Rahman to the chairman of the National Board of Revenue (NBR) on September 22.

"The National Board of Revenue (NBR) can only replace one percent tax at source with 0.25 percent tax, with the rest remaining as it is," said Md Nojibur Rahman in his letter.

For his part, NBR chairman Md Mosharraf Hossain Bhuiyan told The Business Standard that he had received a letter from the Prime Minister's Office (PMO) which would be considered, particularly in relation to a lowering of the rate of tax at source for apparel export.

In her letter on September 12, Rubana Huq had mentioned that the Prime Minister had assured the BGMEA of reducing the rate of tax at source to 25 percent from the current 1 percent.

The BGMEA letter has sought the intervention of the principal secretary in ensuring the implementation of the prime minister's directive vis-à-vis a lower tax rate and calculating it from the first day of the current fiscal year.

Special cash incentive for all 

The BGMEA letter mentioned that the current fiscal year budget allocated one percent special cash incentive for apparel export in light of increased costs of production, dwindling prices in the international market and strength of currency compared with those of countries competing with Bangladesh in the ready-made garment area.

Subsequently, the Ministry of Finance imposed a condition on exporters who have been enjoying regular cash incentives, making it clear they will not be eligible for special cash incentives

The BGMEA president noted that the prime minister had expressed her opinion in favour of providing one percent special cash incentive against the FOB (Freight on Board) price of all apparel export items.

Tax on cash incentive

The apparel exporters have demanded a withdrawal of the deduction of 10 percent advance tax on cash incentives imposed through the budgetary measures of the current fiscal year. Earlier the figure was 3 percent.

The BGMEA president stated that cash incentives are not profits for apparel exporters and therefore, in her opinion, a deduction of advance income tax is not relevant in this context.

Bangladesh / Corporates / Top News

RMG / ready made garment

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • Bangladesh's growth forecast unchanged: WB report
    Bangladesh's growth forecast unchanged: WB report
  • Faiz Ahmad Tayeb. Photo: BSS
    Import duty on raw materials for e-bikes, lithium batteries reduced from 80% to 1% in some cases: Faiz Taiyeb
  • Swedish activist Greta Thunberg, who departed Israel by plane on Tuesday after being detained aboard the Gaza-bound British-flagged yacht "Madleen" after Israeli forces boarded the charity vessel as it attempted to reach the Gaza Strip in defiance of an Israeli naval blockade, talks to journalists surrounded by French police as she arrives at a terminal at the Paris-Charles de Gaulle Airport, in Roissy-en-France near Paris, France, June 10, 2025. REUTERS/Gonzalo Fuentes
    Greta Thunberg says she was kidnapped by Israel in international waters

MOST VIEWED

  • On left, Abdullah Hil Rakib, former senior vice president (SVP) of BGMEA and additional managing director of Team Group; on right, Captain Md Saifuzzaman (Guddu), a Boeing 787 Dreamliner pilot for Biman Bangladesh Airlines. Photos: Collected
    Ex-BGMEA SVP Abdullah Hil Rakib, Biman 787 pilot Saifuzzaman drown in boating accident in Canada
  • File photo of Eid holidaymakers returning to the capital from their country homes/Rajib Dhar
    Dhaka: The city we never want to return to, but always do
  • Chief Adviser Muhammad Yunus leaves for a four-day visit to the United Kingdom from the Dhaka airport on 9 June 2025. Photo: CA Press Wing
    CA Yunus leaves for UK; discussion expected on renewable energy investment, laundered money
  • File Photo: Collected
    Enhanced surveillance at Ctg airport amid rising global Covid-19 cases
  • Inside the aid ship stormed by Israeli forces on 9 June 2025. Photo: BBC
    Israeli forces stormed aid boat carrying Greta Thunberg bound for Gaza: Freedom Flotilla Coalition
  • Photos: Collected
    Abdul Hamid wasn't arrested because he's not wanted right now: Home adviser

Related News

  • Port store rent exemption only for RMG importers will create disparity in other industries: DCCI
  • Budget measures to benefit RMG industry: BGMEA
  • BGMEA election at 2 centres in Dhaka, Ctg underway
  • How trade union became a win-win for workers, owners at Babylon Garments
  • Apparel leaders, global buyers, regulators discuss overlapping audit challenges, compliance requirements in high-level meeting

Features

Illustration: Duniya Jahan/ TBS

Forget Katy Perry, here’s Bangladesh’s Ruthba Yasmin shooting for the moon

6h | Features
File photo of Eid holidaymakers returning to the capital from their country homes/Rajib Dhar

Dhaka: The city we never want to return to, but always do

1d | Features
Photo collage shows political posters in Bagerhat. Photos: Jannatul Naym Pieal

From Sheikh Dynasty to sibling rivalry: Bagerhat signals a turning tide in local politics

3d | Bangladesh
Illustration: TBS

Unbearable weight of the white coat: The mental health crisis in our medical colleges

6d | Panorama

More Videos from TBS

Greta Thunberg deported from Israel

Greta Thunberg deported from Israel

9h | TBS World
BNP is not a revolutionary party: Mirza Fakhrul

BNP is not a revolutionary party: Mirza Fakhrul

9h | TBS Today
News of The Day, 10 JUNE 2025

News of The Day, 10 JUNE 2025

7h | TBS News of the day
Trump sends 2,000 more National Guard and 700 Marines to Los Angeles

Trump sends 2,000 more National Guard and 700 Marines to Los Angeles

10h | TBS World
EMAIL US
contact@tbsnews.net
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Advertisement
  • Privacy Policy
  • Comment Policy
Copyright © 2025
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net