The 2015-16 budget proposes a hike in the industry’s tax at source to one percent from the present 0.30.
“After paying all taxes, a factory’s profit margin lies between 3 to 4 percent, whereas the tax at source has been pegged at one percent,” said Bangladesh Garments Manufacturers and Exporters Association (BGMEA) chief Atiqul Islam.
He told the media on Friday that the budget was ‘not apparel-sector-friendly’.
“In his budget speech, the finance minister said that the apparel sector enjoyed the maximum benefit, but we do contribute a lot to the economy.
“We created 4.4 million jobs. Of which, 3.2 million are women,” the BGMEA president said.
The press conference was jointly held by the BGMEA, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), and the Bangladesh Textile Mills Association (BTMA).
Islam also flayed the proposal to impose one percent duty on capital equipment imports for the apparel industry.
“No other industry has been treated like this. The budget proposal will adversely affect the knit and woven sector. We want the tax at source to be rolled back to the previous 0.30 percent,” said Islam.
The media call was attended by BKMEA President AKM Selim Osman, BTMA President Tapan Chowdhury among other leaders of the Bangladesh apparel industry.
