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Budget 2021-22 fails to meet expectations: BGAPMEA


Bangladesh Garments Accessories and Packaging Manufacturers and Exporters Association (BGAPMEA) said the budget for fiscal year 2021-22 has failed to meet their demands for reducing corporate tax and source tax and providing cash incentive.

Abdul Kader Khan, President, says, though the export-import policy mentioned about providing equal facilities to both direct and deemed exporters, the sector never gets the equal facilities," he noted.

The budget has proposed reducing corporate tax to 30 per cent from existing 32.50 per cent, despite their demands of 10-12 per cent like other export-oriented sectors, he said.

Khan urged the government to consider 10 and 15 per cent corporate tax, respectively, for green and other factories to help overcome the financial crisis in the current situation.

The BGAPMEA president also demanded 0.25 per cent source tax, which is 0.50 per cent at present.

Some 1,800 small and medium accessories and packaging makers are meeting the requirements for 30 to 35 types of such items needed for the RMG exporters, while contributing to help save a huge amount of foreign currency, he explained. The government has been providing cash incentives to some 35 products for many years to increase exports, he said. But the accessories and packaging sector is yet to receive such support in spite of being the export-oriented and SME industry. He demanded 1.0 per cent cash incentive for the sector to help survive the 1,800 factories. The trade body also demanded that the government provide equal budgetary facilities to the accessories and packaging makers as given to the direct exporters, taking the sub-sector's contribution to the export trade and economy. The BGAPMEA, however, hailed the overall budget.