The President of the Bangladesh Garment Manu-facturers and Exporters Association (BGMEA), Atiqul Islam, on Friday welcomed the proposed budget though he expressed the view that the budget was not friendly to RMG.
He made such observation at a post-budget press conference, jointly organised by BGMEA, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) and Bangladesh Textiles Mills Association (BTMA) at BGMEA Bhaban in the city.
They demanded withdrawal of the proposed hike in tax at source. The proposed budget for the fiscal year 2015-16 proposes a hike in the industry's tax at source to one per cent from the existing 0.30 per cent.
"After paying all taxes, a factory's profit margin lies between 3 to 4 per cent, whereas the tax at source has been pegged at one per cent," said Atiqul Islam. "In his budget speech, the Finance Minister said that the apparel sector enjoyed the maximum benefit, but we contribute a lot to the economy."
"We created 4.4 million jobs. Of which, 3.2 million are women," the BGMEA president said.
The press conference was attended by BKMEA President AKM Selim Osman and BTMA President Tapan Chowdhury among other leaders of the Bangladesh apparel industry.