CPD RMG Study Stitching a better future for Bangladesh
Every day, CPD RMG Study team reveals what’s on our economic and apparel radar and curates a selection of the best reports, opinion, and analysis you may have missed
Garment accessories traders dread VAT law
Businessmen in the export-oriented garment accessories sector are fearing a rise in production costs due to implementation of the proposed VAT law from July despite assurances to the contrary from the revenue authority, Bangladesh’s English-language daily, the Daily Star reported.
The report said that at present, all export-oriented sectors are out of the purview of value-added tax. The new law prescribes a uniform 15 percent VAT for most goods and services.
The report quoted an accessories trader and garment exporter as saying “When I met a VAT official he told me that the garment accessories traders will have to pay VAT if he purchases from the local markets and re-sells to the same markets.”
Govt may allow RMG factory owners to ditch workers’ group insurance
Country’s export oriented RMG factory owners are likely to get exemption from paying premium for group insurance for workers as the labour ministry and sector leaders have agreed in principle to realise the insurance claim from the RMG central fund, English language daily New Age reported.
The report said that members of the executive board of the central fund for the RMG sector believe the garment factory owners would have no need to introduce group insurance in their establishments rather if any worker dies in any establishment the company would send the claim to the fund through Bangladesh Garment Manufacturers and Exporters Association.
India’s Tirupur Exporters’ Association members keen on setting up garment units in Odisha
In India, the Odisha government’s new textile/apparel policy may see the light of day with some member companies of India’s largest knitwear/readymade garments cluster — Tirupur Exporters’ Association — evincing interest. The member companies assured the Odisha government to train locals to equip them with requisite working skills, Indian English language daily Financial Express reported.
The report said that a delegation of TEA member companies had visited Odisha on the latter’s invitation to assess the investment opportunities to set up garment manufacturing units.
Pakistani garment makers seek Rs60bln allocations in upcoming budget
In Pakistan, garments manufacturers urged the government to allocate Rs60 billion for the export-oriented industry in the upcoming budget 2017-18 under the PM’s Rs180 billion package, besides releasing all stuck-up claims of the exporters, Pakistani news outlet the News reported.
The report said that in a statement, Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) chairman Ijaz Khokhar, appreciated the Prime Minister Nawaz Sharif for announcing the Rs180 billion export-led growth initiatives. He said this bold decision had started showing results, as the exports of value-added textile industry were on an upward trend despite decline in exports of all other sectors.
