Apparel industry leaders have urged the government to extend cash incentives on export receipts until 2032, in line with WTO guidelines for LDC graduating countries. The call was made at a joint event by BGMEA, BKMEA, and BTMEA. The leaders argued that continuing these incentives is essential for maintaining competitiveness, citing examples from other countries like India. While some FY25 budget proposals are seen as supportive, such as reducing VAT deposit requirements and import tax on certain raw materials, others—like increased import duties on construction materials and capital machinery—are viewed as detrimental. The industry is facing challenges from global economic slowdowns, inflation, and increased production costs. Despite wage hikes, apparel export growth has significantly decreased, necessitating further government support to stabilize the sector and enhance export revenue.
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