The associations of Bangladesh garment and textile industries urged the government to provide business-friendly policy support, especially cut in source and corporate taxes, in the proposed budget for 2016-2017 financial year, saying that otherwise it would have negative impacts on these sectors.
The demand was made at a press conference jointly organized by Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), Bangladesh Textile Mills Association (BTMA), Bangladesh Terry Towel and Linen Manufacturers and Exporters Association (BTTLMEA) and Bangladesh Garments Accessories & Packaging Manufacturers & Exporters Association (BGAPMEA) at BGMEA conference room on 18 July.
BGMEA President Md. Siddiqur Rahman read out a written statement at the press briefing on behalf of the trade organizations. In the statement, concerns were expressed over the budget proposal of increasing source tax from 0.6% to 1.5% for the garment and textile industries.
It said that the 150% hike in the source tax will put extra pressure on the garment and textile industries which have already been facing a number of challenges, including gradual fall in apparel prices, increase in production cost by 8-10%, huge cost of factory remediation, depreciation of currencies by competing countries etc.
The associations urged the government to keep the source tax at 0.6% and the corporate tax at 10% for garment and textile industries. Otherwise, it would be very difficult for the industries to retain their competitive edge in the international market.
The trade associations requested the government to pay serious attention to the matters and reconsider the proposal to help the highest export earning sectors to sustain its competiveness and maintain growth.
First Vice President of FBCCI Md. Shafiul Islam (Mohiuddin), BKMEA President A. K. M. Salim Osman, BKMEA First Vice President A.H. Aslam Sunny, BTMA Vice President Md. Fazlul Hoque, BTTLMEA Chairman Hossain Mehmood, BGAPMEA Second Vice President Moazzem Hossain Moti, former BGAPMEA President Rafez Alam Chowdhury and other senior business leaders were present at the press conference.
BGMEA Senior Vice President Faruque Hassan, Vice President S.M. Mannan (Kochi), Vice President (Finance) Mohammed Nasir,  Vice President Mahmud Hasan Khan (Babu)  and Directors of BGMEA were also present.