BGMEA opposes tax hike

Readymade garment manufacturers today opposed the government’s plan to hike tax upon them and urged for its withdrawal for the “sake of the industry”.

RMG exporters’ association BGMEA made the call today in a post budget addressing a day after the finance minister unveiled the jumbo-size financial plan for 2015-16 fiscal.

In the budget, Finance Minister AMA Muhith told of increasing the tax at source for apparel exporters by more than double – to one percent from the prevailing 0.03 percent.

He had said that the textile and garment industry and other exported items were enjoying various incentives. “The aforementioned tax benefits were allowed just for one year.”

“This type of tax hike will take our industry to the path of destruction,” Atiqul Islam, president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said in a press release at his office.

The BGMEA chief feared that such moves will cause the loss of competitiveness of Bangladeshi apparels in global marketplace. “Recently costs have risen much. We urge the government to withdraw the hike.”

The garment sector contributes more than 80 percent to the national export every year.