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The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has called upon the National Board of Revenue (NBR) to extend their support and cooperation to the readymade garment industry in the face of ongoing global economic challenges.
BGMEA President Faruque Hassan made the request during a meeting with Md. Nazmul Karim, Member (Taxes) of NBR, held in Dhaka on October 10.
The meeting, also attended by Munir Hossain, Vice President of FBCCI and former Director of BGMEA, focused on addressing the significant implications of the global trade situation on Bangladesh's RMG exports and potential strategies to navigate the hurdles and obstacles encountered by the RMG sector.
The problems and challenges related to customs, VAT, and income tax faced by garment exporters in the country also got due importance in the meeting.
President Faruque Hassan emphasized that the RMG industry in Bangladesh is currently going through a difficult period due to the ongoing global economic turmoil mainly caused by the Russia-Ukraine conflict and high inflation rates.
The worldwide economic slowdown has resulted in reduced consumer spending on clothing, leading to a decline in garment orders and exports. Additionally, the fashion industry's evolving demands now necessitate shorter lead times for product deliveries, he said.
Pointing to these challenging circumstances, President Faruque Hassan stressed the importance of NBR's faster and hassle-free services to ensure the RMG industry's competitiveness in the global market.
Delays in shipments, he noted, incur additional costs that further burden the industry, ultimately affecting its competitiveness.
The global economic crisis has already placed substantial pressure on Bangladesh's economy and foreign currency reserves, he said.
President Faruque Hassan underscored that maintaining the RMG industry's competitiveness and continued growth would significantly contribute to bolstering the country's foreign currency reserves.