FE Report

The country's ready-made garment manufacturers urged Sunday the government to include the provisions of policy and cash support in the proposed budget in order to save the sector from ruination by the financial fallout.

They want a 5.0 per cent subsidy on interest, reintroduction of export performance bonus and withdrawal of value added tax on utilities consumed by the RMG factories.

Besides, the garments manufacturers also pleaded for waiver of 0.25 per cent income tax at source and reduction of prices of diesel to Tk 10 per litre to keep them competitive amid global economic downturn.

Addressing a press conference on Sunday, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) leaders demanded to know whether or not they will get any share from the proposed stimulus package worth Tk 50 billion.

"We don't know how much allocation will be made to each affected sector, will we at all receive any money or not from the fund?" Abdus Salam Murshedhy, president of BGMEA said at a press conference held in the city.

"Our next negotiation with the buyers fully depends on the allocation of the stimulus package," BGMEA president added.

The finance minister AMA Muhith in his budget speech on Thursday proposed for allocating Tk 50 billion to combat the effects of the global recession.

Garment manufacturers also want the tax holiday facility to be extended until 2015 and an extension of loan rescheduling without down payment until June 30 of 2010. The current deadline is September 2009.

Mr Salam said a survey conducted by home ministry shows some 63 garment units have closed in recent months following the effect of global recession forcing around 25,000 workers out of employment.

"It is really unfortunate that we did not get any respite package in the proposed budget despite the government survey report relating to closure of the factories," Salam added.

However, BGMEA leaders said the government should convene a meeting of task forces formed to oversee the effects of global economic crisis.

"The task force meeting should urgently be called to discuss issues relating to the troubles being faced by the RMG sector," Salam added.

Relating to the disclosure of undisclosed incomes, BGMEA president said that it would be a discriminatory step and a fall in moral values. When asked whether the provision should be retained on withdrawn, the BGMEA chief refrained from answering.