The Bangladesh Garment Accessories and Packaging Manufacturers and Exporters Association (BGAPMEA) on Thursday voiced several concerns regarding the proposed budget, highlighting its perceived shortcomings in fostering a business-friendly environment.
During a post-budget press conference at a city hotel, BGAPMEA President Md Shahriar expressed disappointment over the lack of specific measures aimed at enhancing the business climate.
While acknowledging positive aspects such as the reduction in corporate tax rates for individual-owned companies and lower taxes on essential items to combat inflation, Shahriar criticized the budget’s inconsistency in addressing key concerns.
Shahriar pointed out the disparity in tax rates, particularly the discrepancy between the proposed 15 per cent tax on whitening ‘undisclosed’ money and the 30 per cent tax rate for regular taxpayers.
He emphasized that clarity and fairness in tax policies are essential for fostering trust and compliance among taxpayers.
Furthermore, BGAPMEA’s former presidents Rafez Alam Chowdhury and Abdul Kader Khan echoed Shahriar’s sentiments, highlighting the budget’s potential impact on local industries.
They criticized the proposed increases in duties on pre-fabricated building materials and VAT on energy-saving lights, which they argued would escalate production costs and undermine competitiveness.
Shahriar warned that these measures, if implemented, could lead to severe crises, potentially forcing factories to shut down and exacerbating unemployment.
He called for the withdrawal of these proposals and urged the government to reconsider policies that could hinder industrial growth and investment.
Shahriar urged the government to address several other industry-specific concerns, including the withdrawal of proposed new bond license fees and renewal fees, and the reduction of source tax rates to stimulate investment in the sector.
He underscored the significant contributions of the garment accessories and packaging industry, which has invested Tk 400 billion and plays a crucial role in supplying goods not only to the readymade garment sector but also to pharmaceuticals, frozen foods and other industries.
The sector, he noted, earned $8.0 billion from supplying goods to local RMG exporters.
Rafez Alam Chowdhury said that achieving the industry’s export target of $100 billion by 2030 would require robust policy support and proactive measures from the government.
In conclusion, BGAPMEA’s critique underscores the importance of addressing industry-specific concerns and ensuring that budgetary measures support rather than hinder economic growth and job creation in Bangladesh.