BGMEA ratchets up calls for stimulus
Abdus Salam Murshedy, president of Bangladesh Garment Manufacturers and Exporters Association, speaks at a post-budget press conference in Dhaka yesterday.Photo: STAR
BGMEA leaders yesterday reiterated their demand for a stimulus package for the ready-made garments (RMG) sector to offset the impacts of recession.
At a post-budget press conference, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Abdus Salam Murshedy termed the proposed budget for fiscal 2009-10 unfortunate, as their demand was not met.
In the run-up to the budget, the RMG makers had lobbied with ministers and other high-ups in the government for a stimulus package after the effects of global recession loomed over exports.
Finance Minister AMA Muhith did not propose any stimulus package for the country's main export earning sector in his budget speech on June 11, although he announced a stimulus package worth Tk 5,000 crore. The minister did not mention which sectors would benefit from a reserve fund.
"We did not get any benefit from the interim stimulus package and the RMG sector was bypassed in the stimulus package in the proposed budget," Murshedy said.
The BGMEA chief demanded a 5 percent subsidy on bank interest rate and subsidy on the purchase of diesel at Tk 10 per litre.
He said the government should give bonus on export performance or cash incentives of 10 percent against exports. He said the government should also withdraw VAT on utilities for the garment factory owners.
Murshedy criticised the provision to allow people to whiten undisclosed money, as he said honest taxpayers would be discouraged from paying tax.
The BGMEA chief also urged the government to reinstate a tax break up to 2015 and fix duty on import of export-oriented capital machinery at 1 percent.
The government should provide long-term loans to set up Effluent Treatment Plants (ETPs) in factories to save the country from environmental pollution, he said.
Murshedy also urged the government to extend the loan rescheduling facility without any down-payment up to 2010 from June 30, 2009 now.
"We demand the taskforce committee on global recession hold a meeting to extend an allocation for the RMG sector from the proposed stimulus package worth Tk 5,000 crore," he said.
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