On 13th March, the Bangladesh Garments Buying House Association (BGBA) presented a comprehensive set of policy recommendations to the National Board of Revenue (NBR) during a pre-budget discussion, aimed at boosting the country’s vital garment export sector.
Led by Vice President AKM Saifur Rahman, the BGBA delegation emphasised several key areas that require urgent attention. A significant request was made for a reduction in the Advance Income Tax (AIT) rate to 7.5 per cent under section 124, a move the association believes would alleviate the financial strain on buying houses.
Rahman stated, “A reduced AIT rate will provide much-needed financial relief and enable us to reinvest in expanding our operations.”
Another crucial proposal involved the introduction of a separate passbook for the clearance of buying house samples. This initiative is designed to streamline the process and eliminate VAT and taxes on samples, which are vital for securing international orders. “This separate passbook will remove a significant hurdle and foster greater business activity among our members,” Rahman stressed.
Additionally, the BGBA urged the NBR to facilitate export permissions for garments made from locally sourced fabrics and trims, alongside a duty drawback mechanism to incentivize such exports. “Utilising local resources will strengthen our domestic supply chain and enhance our competitiveness in the global market,” Rahman explained.
The association also requested subsidies for participation in international trade fairs, recognizing their importance in showcasing Bangladeshi garment products and attracting foreign buyers. “Support for international trade fairs will provide invaluable exposure and help us expand our market reach,” Rahman added.
The implementation of these policy recommendations, according to the BGBA, would significantly contribute to the growth and sustainability of the garment export sector, fostering a more conducive business environment, attracting greater investment, and ultimately increasing export earnings for Bangladesh.
The NBR Chairman listened attentively to the BGBA’s proposals and assured the delegation that their concerns would be duly considered in the upcoming budget formulation.
