Bangladesh Garment Manufacturers and Exporters Association president Atiqul Islam on Thursday alleged that international buyers were pulling out their business from readymade garment factories situated in shared buildings. He cited that in last six months they cancelled export orders worth US$ 110 million from 57 such factories. At a pre-budget discussion with the National Board of Revenue, he said that foreign buyers were canceling export orders that they made to the factories housed in shared buildings though they had promised not to take out their business from such factories.
‘BGMEA visited 419 RMG factories housed in shared buildings and found that international buyers cancelled export orders from 57
factories,’ Atiqul said, adding that 40 per cent of garment factories in the country are housed in share buildings.
In this situation, factories in shared buildings are required to be relocated immediately, he said.
The BGMEA president demanded withdrawal of duty on import of pre-fabricated building materials to expedite relocation process.
Accord, an EU retailers’ group, has already closed down 13 such factories on the ground of non-compliance that left 13,000 workers jobless, he said.
‘The NBR should withdraw 61 per cent duty on import of pre-fabricated building materials to expedite
relocation process and avoid export orders cancellation in future,’ Atiqul said.
At the meeting, other organisations in apparel sector including Bangladesh Knitwear Manufacturers and Exporters Association also echoed the same demand.
RMG factory owners also demanded for withdrawal of duties and value-added tax on import of all fire safety equipments to ensure fire safety in factories and save loss of life of workers and national assets.
Though the NBR has already reduced duty on import of many fire safety equipments, duty and VAT still exists on some important equipment including fire protective doors and double door hose cabinet, they said.
They also demanded for withdrawal of duty on import of LED light for export-oriented industries to save electricity.
They also sought full exemption on paying VAT on utility bills. Currently, export-oriented RMG factories enjoy VAT exemption at the rate of 80 per cent on gas and electricity bills and 60 per cent on water bills.
BGMEA and BKMEA also demanded that the NBR should extend the time limit for submission of documents for audit activities to 6 months from the existing 3 months.
Apparel exporters also sought waiver from submitting VAT returns to the VAT office as export-oriented RMG factories are waived from paying VAT.
BKMEA first vice-president Mohammad Hatem placed the budget proposal at the meeting.
Bangladesh Garments Accessories and Packaging Manufacturers and Exporters Association president Rafez Alam Chowdhury demanded the NBR should transfer the authority of issuing utilisation permission certificates to the association.
He also wanted VAT exemption on procurement of raw materials from local market.
Bangladesh Textile Mills Association demanded reduction of duty on import of cotton substitute raw materials and withdrawal of minimum tax on the sector.
Stakeholders from jute and jute spinners sectors sought reduction of source tax on export of jute and jute goods to 0.10 per cent from the existing 0.80 per cent.
They also demanded for not deducting tax on cash incentive given to the sectors to be competitive in export market.
NBR member Farid Uddin presided over the meeting.
Bangladesh Terry Towel and Linen Manufacturers and Exporters Association, Exporters Association of Bangladesh, Bangladesh Plastic Goods Manufacturers and Exporters Association, Bangladesh Cloth Merchant Association, among others, placed their budget proposals at the meeting.
-With New Age input
