Apparel exporters seek govt policy support

Apparel exporters have sought government policy support to address various challenges confronting Bangladesh's ready-made garment industry, including reducing the tax burden on the sector to ensure sustainability.

They made the demand during a discussion with Textiles and Jute Minister Jahangir Kabir Nanak at the secretariat day.

The delegation from the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) was led by its president, SM Mannan (Kochi).

During the meeting, the BGMEA President said the garment industry is facing challenging times due to various local and international factors.

He highlighted the decline in consumer demand and spending on clothing in developed countries, alongside a decrease in product prices and a significant increase in production costs within the industry.

Over the past five years, rising gas and electricity prices, wages, bank interest rates, and transportation costs have led to a rise in the cost of doing business by around 50% on average, he added.

The BGMEA President also underscored the importance of policy support, particularly in reducing the tax burden on the sector, to ensure its sustainability, foster export growth, and safeguard employment opportunities.

Uninterrupted gas and power supply, streamlined business processes through reduction of customs hindrances, bond audits, and VAT complexities in goods clearance, are also essential for the RMG sector, he added.

In the meeting, the preparedness of the garment industry for the post-LDC era was also discussed, as many trade benefits currently enjoyed by Bangladesh would be no longer available following the country's LDC graduation.

The BGMEA President stressed the necessity of policy support to attract increased investment in promising sectors.

Textiles and Jute Minister Jahangir Kabir Nanak underscored the garment industry's substantial contribution to socioeconomic development and poverty alleviation, affirming the government's recognition of it as an important economic driver.

The minister said he would hold meetings with higher government authorities and the National Board of Revenue (NBR) to address complications faced by the garment industry in relation to customs and taxation.

He assured the BGMEA leaders of the all-out cooperation from the Textiles and Jute Ministry to the RMG industry.

Among others BGMEA Vice President (Finance) Md Nasir Uddin, Vice President Abdullah Hill Rakib, and Directors Md Imranur Rahman, Md Ashikur Rahman (Tuhin), Shams Mahmud, Md Nurul Islam, Saifuddin Siddiquie Sagar, and Md Rezaul Alam (Miru) were also in the delegation.

Md Abdur Rauf, secretary, Ministry of Textiles and Jute, and Md Nuruzzaman, director general at the Department of Textiles, were also present at the meeting.