Bangladesh Garments Accessories & Packaging Manufacturers & Exporters Association (BGAPMEA), a national chamber of garment accessories and packaging suppliers of the country, stressed six-point demands to the Government and concerned authorities to bring in good business for the sector in 2018.
The six points include reduction in corporate tax for accessories and packaging sector to 12 per cent from the existing 35 per cent, allocation of 5 per cent of cash incentives, imported raw materials to be unloaded using ‘free time’ facilities at Chittagong and other land ports, single-digit interest rate for bank loans, faster hand over of Utilization Permission (UP) to importers at port and implementation of 0.70 per cent source tax for the next five years.
Md. Abdul Kader Khan, President of BGAPMEA, mentioned these demands while talking to the media at his office in capital Dhaka, recently.
In his speech, Khan said that despite the lack of support from the Government and the other trade associations, the accessories and packaging sector has registered US $ 6.70 billion in revenue during the 2016-2017 financial year. Of the total, US $1.12 billion worth items were exported directly to the Netherlands, South Africa, the Middle East, Italy, Germany and Austria.
“The accessories and packaging sector is a shadow exporter industry that bagged a business worth of US $ 6.70 billion in 2016-17. Constant pressure from buyers to minimise product cost of RMG manufacturers is also pressurising accessory manufacturers to minimise cost, so our profit margin has reduced to a considerable level,” Khan maintained.
He also said that to bring in new business for this sector in 2018 the Government needs to take necessary measures immediately to address those six demands.
“We are hopeful that 2018 will bring good business to the sector. Though devaluation of Taka against USD has lowered our profit margin, we are still hopeful if products order grows and the Government supports us, we can recover such losses,” Khan pronounced.