Bangladesh Garment Manu-facturers and Exporters Association (BGMEA) and Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) yesterday hailed the proposed budget for the 2006-07 financial year for withdrawing duty on the machinery to set up effluent treatment plant.
However, the associations expressed disappointment as some of their recommendations remained uncared for in the budget.
The apex body in the garments sector asked for more budgetary allocation for the power and energy sector, cautioning that any continuation of the present power crisis would definitely hamper production and investment in the garment industry.
BGMEA also urged the government to extend the bonding period to 24 months from existing 15 months, allow duty free import of machinery and some spare parts, continue the cash incentive package for another five years and provide the tax holiday facility in the garment sector.
Expressing frustration for not providing any tax holiday to their sector, the BKMEA said it is urgent that a special fund should be created to flourish the knitwear industry.
