“There’s an estimated 1 percent incentive (equivalent to Tk 2,825 crore) in the proposed budget which is not enough for the industry. So, we demand a 3 percent incentive to meet our challenges and compete in international markets,” BGMEA President Rubana Huq said at a press conference on the proposed budget at a city hotel on Sunday.
This is very good that an amount of Tk 74,367 crore has been allocated for social safety net, she said hoping that apparel sector workers would be brought under the social safety net programme.
The BGMEA president also described the proposed budget as a business- and people-friendly one. “But we can’t be cent percent happy with it. We’re 70 percent happy at the budget.”
“We’re facing many challenges in product diversification, improving image crisis, technological development, innovation and value addition. Our orders have been reduced as consumer demand has been changed in global markets," she said.
Rubana said they cannot be fully mature in international markets for lack of innovative ideas. “So, we need more cash incentive to flourish the industry and explore new markets,” she said.
She also said the owners of 30 garment factories have been forced to shut down their units in the last one month. “Even many owners paid salaries of their workers after selling their machinery. Those who are saying there’s no need for incentive for the garment sector are not right.”
The BGMEA chief also said the living cost of garment workers has increased sharply which should be taken into consideration.
She said they did not get more than Tk 800 crore as cash incentive in the last several years. “Besides, many owners don’t take incentive while some others failed to get it following bureaucratic complexity.”
Rubana said they want to create one entrepreneur in every family.
She also thanked the government for giving 100 percent VAT exemption on water, gas and electricity bills for the garment sector.
About reducing the bank loan interest rate to single digit, she demanded a clear directive in the proposed budget.
The BGMEA chief also demanded implementation of the bankruptcy law.
Earlier, BGMEA demanded 5 percent cash incentive equivalent to Tk 14,125 crore.
BGMEA Senior Vice-president Faisal Samad, Vice-presidents SM Mannan Kochi, MA Rahim Firoz and M Moshiul Azom Sajal were present at the press conference.