Faced with multitude of challenges on account of COVID-19 pandemic that has hit garment exports severely, apparel manufacturers in Bangladesh have sought reduction of corporate tax and increasing the incentive to 10 per cent from the current 4 per cent, for next 2 years, as per media reports.
The garment makers sought these from the Government to help them tide over the challenges and counter the negative impact posed by the coronavirus pandemic.
Among the other support, we need immediate enhancement of incentives from 4 to 10 per cent for next 2 years, reportedly maintained a senior official of garment makers’ trade body, adding Government support under the given circumstances has become necessary for the sake of survival.
It may be mentioned here that as per reports, 320 out of 2,200 factories that are members of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) were closed in the last few months while 110 RMG units out 850 member factories of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) were also closed during this time.
Many manufacturers have also expressed apprehensions that if a second wave of the pandemic hits West, it could prove disastrous for the garment exporters for Bangladesh.
