In a meeting with journalists at the Sonargaon Hotel in Dhaka, the newly elected board of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) voiced concerns over harassment faced by businesses from customs officials at ports and bond facilities.

BGMEA President SM Mannan Kochi called upon the government to take legal measures against customs and bond officials causing disruptions to export operations through such harassment. He emphasized the importance of ensuring a conducive environment for business.

Highlighting the significance of the garment sector in achieving Bangladesh’s export targets, Mannan urged the government to extend cash incentives for garment exports until 2029. He stressed that such incentives are crucial for reaching the ambitious $100 billion export goal by 2030.

Mannan pointed out that with Bangladesh expected to graduate from the least developed country status by 2026, continued incentives until 2029 align with World Trade Organization regulations. He cautioned that premature cessation of incentives could jeopardize the sector’s competitiveness and hinder export targets.

Requesting specific policy changes, Mannan urged a reduction in the tax at source on exports from 1 percent to 0.5 percent over the next five years. Additionally, he proposed lowering the tax on cash incentives from 10 percent to 5 percent in the upcoming national budget for the fiscal year 2024-25.

The BGMEA president advocated for expanding incentives beyond cotton garments and decreasing income tax on export retention quotas from 20 percent to 10 percent in the next budget.

Mannan also outlined efforts to enhance relations with workers in the garment sector, including proposals for a special fund in the budget to provide subsidized essential commodities for workers.

Expressing concerns over utility connections for factories outside industrial zones, Mannan urged the government to reconsider its decision, highlighting potential losses for entrepreneurs already invested in such areas.