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
Abolish source tax for 2 years: BGMEA
Garment manufacturers yesterday demanded reduction in source tax to zero percent from existing 0.70 percent for the next two years, and cash incentive of 5 percent on exports to help the sector tide through the current choppy waters, the daily Star reported.
The report also said that the Bangladesh Garment Manufacturers and Exporters Association also demanded the corporate tax for apparel makers be halved to 10 percent in the upcoming national budget.
The demand comes as apparel exporters are struggling to maintain the average growth rate of 13 percent that the sector has witnessed over the last few years.
Garment exports grew only 2.21 percent to $23.13 billion during the first ten months of the current fiscal year, according to the report.
GDP-centric dev fails to spur job creation, pvt investment: CPD
The Centre for Policy Dialogue on Saturday observed that the current growth-driven development in the country could not generate sufficient employment and failed to achieve the expected breakthrough in private investment, English language daily New Age reported.
The report added that at a press briefing, the independent research organisation also said that the country’s banking sector with piled up non-performing loans and lack of good governance had become a growing malignancy for the economy and was circulating ‘polluted blood’ to the other sectors of the economy.
BGMEA seeks 5pc cash incentive for next 2-yrs
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) sought additional five percent cash incentive on apparel export for the next two years, the daily Star reported.
BGMEA President M Siddiqur Rahman placed the demand of the apparel sector to the government at a press conference at BGMEA office.
“Apart from the existing facilities, we want additional 5 percent cash incentive on the export value of FOB for next two years which will be applicable for only the members of BGMEA and BKMEA to protect country’s apparel industry,” said Siddiqur.
Finance Minister Muhith says uniform VAT rate will remain unchanged at 15%
Finance Minister Abul Maal Abdul Muhith in a dramatic reversal of his earlier stance has said the uniform VAT rate will remain unchanged at 15 percent, bdnews24.com reported.
“We had a lot of discussion over the issue. We have decided to keep it at 15 percent in the next fiscal year,” the report quoted Muhith as saying while speaking to a group of reporters at his secretariat office in Dhaka on Saturday.
BIMSTEC Free Trade Agreement must go above and beyond to reap benefits, says CPD’s Moazzem
The proposed BIMSTEC free trade agreement must provide additional benefits ‘beyond and above’ existing trade agreements in place among the member countries if it has to succeed, says Centre for Policy Dialogue (CPD) research director Khondaker Golam Moazzem, bdnews24.com reported.
“The BIMSTEC FTA must impact above and beyond the bilateral and other trade agreements among the countries,” the report quoted Dr. Moazzem as saying while presenting a paper on ‘Trade and Connectivity in BIMSTEC Region’ at Bangkok’s Chulalongkorn University on Saturday.
