Garment makers against tax hike in proposed budget of Bangladesh

Garment makers yesterday demanded that the government continues the 0.3 percent tax at source instead of the proposed hike to 1 percent saying the sector would be badly affected if the tax was increased.

“Although I welcome the proposed budget, as it is business-friendly, it is not textile and garment friendly,” said Atiqul Islam, president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), at a post-budget press meet at the association's office in Dhaka.

“The export-oriented textiles and garment sector is the worst affected sector by the proposed budget. The proposed 233 percent export tax hike will only hamper growth of the sector,” Atiqul told journalists.

The proposed tax hike goes against the proposed GDP growth target of 7 percent, as it would hamper expansion, productivity, industrialisation and investment.

Many entrepreneurs would feel discouraged to either expand their existing operations or establish new factories due to the proposed hike in tax, he said.

Although the garment export target was set at 10 percent, it grew by 2.98 percent in the first 11 months of the current fiscal year, he added.