2:50 am, Sunday, 3 November 2024

BGMEA, BKMEA, BTMA for smooth supply of energy

Expressing concern over central banks’ recent directions over gas connection and mandatory clearance certificates from utility service providers, leaders of the country’s textile and clothing sectors demanded uninterrupted gas and electricity supply to factories.

Bangladesh Bank’s recent circulars stated that no electricity and gas connections would be provided to new factories if they are established outside the government-designated economic zones or industrial areas.

Also banks were directed to ensure mandatory clearance certificates from utility service providers before approving loans.

Expressing concern, the leaders said garment industry is at a crossroads due to the current geopolitical crisis that is causing disruptions in global trade.

“And the implementation of the circulars would exacerbate the crisis of the garment industry, hindering its growth and discouraging entrepreneurs from setting up new factories,” Bangladesh Garment Manufacturers and Exporters Association (BGMEA) president SM Mannan Kochi said.

The BGMEA president was speaking while presiding over a meeting with the leaders Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), Bangladesh Textile Mills Association (BTMA) and Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) held on Wednesday night at BGMEA’s Uttara office in the city.

The leaders met discussing the current pressing issues of the ready-made garment (RMG) industry.

BKMEA Executive President Mohammad Hatem, BTMA President Mohammad Ali Khokon, FBCCI Vice President Md Munir Hossain, BGMEA Vice Presidents (Finance) Md Nasir Uddin, Abdullah Hil Rakib, Directors Md Imranur Rahman, Mohammad Sohel Sadat, Shams Mahmud, Rajiv Chowdhury, Md Jakir Hossain, and Md Rezaul Alam (Miru), among others, were present.

During the meeting, various issues of the garment industry were discussed, especially focusing on two circulars recently issued by the Bangladesh Bank, source tax and custom related issues.

These circulars stated that no electricity and gas connections would be provided to new factories if they are established outside the government-designated economic zones or industrial areas.

Also banks were directed to ensure mandatory clearance certificates from utility service providers before approving loans.

The leaders highlighted that many garment factories established outside the designated economic zones or areas are undergoing expansion, and new factories are under construction.

Therefore, implementing the circulars at this point would disrupt ongoing expansion works and new establishment efforts, they noted.

The leaders urged the government to exempt the garment industry from the circulars for at least five years and reiterated the demand for uninterrupted power and gas supply.

The issues related to customs, VAT, and income tax in the garment industry were also discussed in the meeting.

The business leaders urged the National Board of Revenue (NBR) to make customs, VAT, bonds, and tax-related processes faster, easier and hassle-free to facilitate sustainable industry development, aiming to achieve the target of US$100 billion from garment exports by 2030.

During the meeting exporters proposed reducing the tax at source applicable to the garment industry from existing 1.0 per cent to 0.5 per cent to mitigate the increased costs of doing business and maintain competitiveness.

The leaders also discussed Bangladesh’s graduation from the Least Developed Country (LDC) status and possible strategies to retain competitiveness in the post-graduation era.

They emphasized the need for necessary policy support to attract increased investment in promising sectors for overall economic benefits.

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BGMEA, BKMEA, BTMA for smooth supply of energy

Update Time : 01:30:11 am, Friday, 10 May 2024

Expressing concern over central banks’ recent directions over gas connection and mandatory clearance certificates from utility service providers, leaders of the country’s textile and clothing sectors demanded uninterrupted gas and electricity supply to factories.

Bangladesh Bank’s recent circulars stated that no electricity and gas connections would be provided to new factories if they are established outside the government-designated economic zones or industrial areas.

Also banks were directed to ensure mandatory clearance certificates from utility service providers before approving loans.

Expressing concern, the leaders said garment industry is at a crossroads due to the current geopolitical crisis that is causing disruptions in global trade.

“And the implementation of the circulars would exacerbate the crisis of the garment industry, hindering its growth and discouraging entrepreneurs from setting up new factories,” Bangladesh Garment Manufacturers and Exporters Association (BGMEA) president SM Mannan Kochi said.

The BGMEA president was speaking while presiding over a meeting with the leaders Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), Bangladesh Textile Mills Association (BTMA) and Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) held on Wednesday night at BGMEA’s Uttara office in the city.

The leaders met discussing the current pressing issues of the ready-made garment (RMG) industry.

BKMEA Executive President Mohammad Hatem, BTMA President Mohammad Ali Khokon, FBCCI Vice President Md Munir Hossain, BGMEA Vice Presidents (Finance) Md Nasir Uddin, Abdullah Hil Rakib, Directors Md Imranur Rahman, Mohammad Sohel Sadat, Shams Mahmud, Rajiv Chowdhury, Md Jakir Hossain, and Md Rezaul Alam (Miru), among others, were present.

During the meeting, various issues of the garment industry were discussed, especially focusing on two circulars recently issued by the Bangladesh Bank, source tax and custom related issues.

These circulars stated that no electricity and gas connections would be provided to new factories if they are established outside the government-designated economic zones or industrial areas.

Also banks were directed to ensure mandatory clearance certificates from utility service providers before approving loans.

The leaders highlighted that many garment factories established outside the designated economic zones or areas are undergoing expansion, and new factories are under construction.

Therefore, implementing the circulars at this point would disrupt ongoing expansion works and new establishment efforts, they noted.

The leaders urged the government to exempt the garment industry from the circulars for at least five years and reiterated the demand for uninterrupted power and gas supply.

The issues related to customs, VAT, and income tax in the garment industry were also discussed in the meeting.

The business leaders urged the National Board of Revenue (NBR) to make customs, VAT, bonds, and tax-related processes faster, easier and hassle-free to facilitate sustainable industry development, aiming to achieve the target of US$100 billion from garment exports by 2030.

During the meeting exporters proposed reducing the tax at source applicable to the garment industry from existing 1.0 per cent to 0.5 per cent to mitigate the increased costs of doing business and maintain competitiveness.

The leaders also discussed Bangladesh’s graduation from the Least Developed Country (LDC) status and possible strategies to retain competitiveness in the post-graduation era.

They emphasized the need for necessary policy support to attract increased investment in promising sectors for overall economic benefits.