RMG makers demand continuation of tax holiday

Apparel manufacturers at a pre-budget consultative meeting demanded the continuation of tax holiday and a duty free import of raw materials and capital machinery. President of Bangladesh Textile Mills Association (BTMA) Abdul Hai Sarker said the continuation of the tax holiday facility for the development of the country's apparel sector is a must as this sector brings more than 76% of the export earnings.

He said the primary textile sector has been facing a number of problems since the last budget proposal when the government imposed 10% duty and VAT on import of some raw materials of textile.

Investment in the textile sector declined substantially over the last one year due to the imposition of duty and VAT on import of raw materials of viscose, staples fires and on some dyeing chemicals. The apparel manufacturers and exporters also urged the government to maintain smooth gas supply to their production plants to have a greater global market share.