Economic Reporter :
Manufacturers of the country’s garment accessories demanded 15 percent corporate tax for the next fiscal year 2017-18 to remain competitive in global market. Garment accessories are considered as the backward linkage industry of the county’s clothing industry contributes substantially to the RMG export earnings.
“Garment accessories are closely linked with the apparel sector and provides essential accessory products within a short span of time leading to cut the lead time. That is why, we demanded 15 percent corporate tax as offered for the RMG sector,” said Abdul Kader Khan, president of Bangladesh Garments Accessories and Packaging Manufacturers and Exporters Association (BGAPMEA).
Khan pointed out that if the corporate tax is reduced to 15 percent like the RMG sector, it would help to increase reinvestment which ultimately help create more jobs for the country. In achieving the middle income country status by the year 2021 and to meet the Sustainable Development Goals (SDGs), creating new jobs is a pre-requisite, he added.
In the next budget for FY’18, Finance Minister AMA Muhith proposed to cut corporate tax to 15 percent from 20 percent for the RMG sector. But, the garment accessories sector has to pay 35 percent corporate tax as it remains same as in the current budget. Meanwhile, BGAPMEA has called for bringing down the tax at source to 0.50 percent for the next fiscal. Currently, RMG makers as well as the accessories products manufacturers pay 0.70 percent tax at source. If the government lowered tax at source and corporate tax for the sub-sector of RMG, it would be able to contribute US$12 billion to RMG export to help the industry materialise $50 billion export target by 2021.
In last fiscal, accessories makers earn $6.12 billion, which is expected to reach at $18 billion by 2025. The platform of the accessory makers also demanded cash incentives against the export earnings as it will help increase export earnings from the direct export.
Manufacturers of the country’s garment accessories demanded 15 percent corporate tax for the next fiscal year 2017-18 to remain competitive in global market. Garment accessories are considered as the backward linkage industry of the county’s clothing industry contributes substantially to the RMG export earnings.
“Garment accessories are closely linked with the apparel sector and provides essential accessory products within a short span of time leading to cut the lead time. That is why, we demanded 15 percent corporate tax as offered for the RMG sector,” said Abdul Kader Khan, president of Bangladesh Garments Accessories and Packaging Manufacturers and Exporters Association (BGAPMEA).
Khan pointed out that if the corporate tax is reduced to 15 percent like the RMG sector, it would help to increase reinvestment which ultimately help create more jobs for the country. In achieving the middle income country status by the year 2021 and to meet the Sustainable Development Goals (SDGs), creating new jobs is a pre-requisite, he added.
In the next budget for FY’18, Finance Minister AMA Muhith proposed to cut corporate tax to 15 percent from 20 percent for the RMG sector. But, the garment accessories sector has to pay 35 percent corporate tax as it remains same as in the current budget. Meanwhile, BGAPMEA has called for bringing down the tax at source to 0.50 percent for the next fiscal. Currently, RMG makers as well as the accessories products manufacturers pay 0.70 percent tax at source. If the government lowered tax at source and corporate tax for the sub-sector of RMG, it would be able to contribute US$12 billion to RMG export to help the industry materialise $50 billion export target by 2021.
In last fiscal, accessories makers earn $6.12 billion, which is expected to reach at $18 billion by 2025. The platform of the accessory makers also demanded cash incentives against the export earnings as it will help increase export earnings from the direct export.
