Readymade garment manufacturers and exporters said the one percent cash incentive in the proposed budget for FY20 was not enough and demanded three percent incentive on export receipts.
The formal reaction of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) came on Sunday (Jun 16) — two days after Finance Minister Mustafa Kamal presented the Tk 5.23 trillion budget for fiscal year 2019-20 in parliament.
“We are proposing at least three percent incentive but the government gave us only one percent,” said BGMEA President Rubana Huq told a media call.
The Bangladeshi apparel industry is now facing existential crisis, she claimed before adding, “The sector has seen on an average of 5 percent growth. As many as 30 factories were shutdown in the last one month.”
According to Huq, in case of three percent incentive, the government will need to give two percent more and it will have to spend an additional Tk 56.50 billion.
The total amount will be Tk 84.75 billion in cash assistance if the industry gets three percent incentive, she added.
The BGMEA president also urged the government devalue the local currency by at least Tk 5 against a $1 to be more competitive in global market.
The government will require an additional Tk 124.19 billion if that’s done, according to Huq.
The business leader said that they were disappointed as the social safety net does not include the apparel workers.
Huq has said they were “70 percent happy” with the proposed national budget for the next fiscal year.