Govt should continue RMG policy support until 2029
The incentives will help to increase share in new markets, which will help diversify our markets and products
The government should continue policy support, especially cash incentives, until 2029, and introduce alternative support to create a comparative advantage in global markets.
Incentives will help to increase market share in new markets, which will help diversify our markets and products.
The government may reduce the source tax on exports from the current 1% to 0.5% and to keep this rate for the next five years.
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We request for a reduction in the source tax deduction on cash incentives from the current 10% to 5%.
The export-oriented RMG sector enjoys tax exemption at the import-export stage and on certain locally-sourced goods and services. However, VAT is still being levied on several locally-sourced goods and services. We request for the exemption of VAT on locally-sourced goods and services.
We also request to introduce food rationing for the RMG workers to combat high inflation.
To ensure ease of doing business, NBR should take measures to end the harassment by the customs and bonds officials during import and export, especially to adopt a Harmonized System (HS) Code for imports of raw materials, machineries and its parts.
To import solar-related equipment for promoting renewable energy, the government should provide a duty-free or concessional duty rate.
SM Mannan Kochi is the president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and chairman of Seha Design (BD) Ltd.
