Apparel Online Bangladesh Magazine July Issue 2018 | Page 34

BANGLADESH CANVAS APPAREL RESOURCES NEWSLETTERS FACEBOOK FRIENDS To subscribe, send us an email at [email protected] Join more than 10,000 people who are already fans of Apparel Resources on facebook. Search for Apparel Resources at https://www.facebook.com/apparelresources/ VF Corp. likely to amplify apparel sourcing from Bangladesh US-based global leader in branded lifestyle apparel, footwear and accessories, VF Corporation is expected to increase sourcing apparel items from Bangladesh in the upcoming fiscal. In a meeting with Bangladesh Garment Manufacturers and Exporters Association (BGMEA) during a courtesy meet in Dhaka recently, Cameron Bailey, Vice President – Global Product Supply at VFC, hinted at the amplifying imports. Confirming the news to Apparel Online, BGMEA President Siddiqur Rahman, said, “VF has talked about expanding their trade with Bangladesh. They said they have plans to source more apparel items from us.” The BGMEA chief, however, refused to reveal further as things are still at the initial stage. BGMEA Vice Presidents SM Mannan and Mahmud Hasan Khan were also present at the meeting. Additionally, meeting insiders say that the visiting delegation inquired about the overall condition of Bangladesh’s apparel industry. They also queried about Accord and Alliance based on the backdrop that their five-year-term in the country has expired. The association apprised the VF official about the progress that the country has made over years and how it’s promoting workplace safety. Markedly, VF Corporation outfits consumers around the world with its diverse portfolio of iconic lifestyle brands, including Vans, The North Face, Timberland, Wrangler, and Lee. Founded in 1899, VF is one of the world’s largest apparel, footwear and accessories companies with socially and environmentally responsible operations spanning numerous geographies, product categories and distribution channels. Budget FY '19 plans to raise tax for apparel units Bangladesh Government is planning to raise tax for its apparel sector, which is being viewed as against the interests of the industry that is targeted to reach US $ 50 billion by 2021. In the budget plan for fiscal 2018- 19 laid out before the Parliament, the Government unveiled its plans to raise the corporate tax rate to 15 per cent for all garment companies, what was previously 12 per cent. Also, there are plans to introduce a separate corporate tax structure for public limited manufacturing and export companies at 12.5 per cent. This new policy is seen as a latest measure to encourage quality garments companies to come to the stock market. It is to be noted that though there are around 4,300 registered garment factories, there are very few in the capital market. Additionally, the corporate tax for green factories has been raised to 12 per cent, from what was 10 per cent earlier. Some 289 certified green factories existing in the country have already complained that going green has not helped them in improving business. 34 Apparel Online Bangladesh | July 2018 | www.apparelresources.com In the budget plan for fiscal 2018-19 laid out before the Parliament, the Government unveiled its plans to raise the corporate tax rate to 15 per cent for all garment companies, what was previously 12 per cent. “Readymade garments industry is playing an important role in generating employment and fostering economic growth,” Finance Minister AMA Muhith said during his speech at the Parliament, adding, “Taking into consideration that fact, readymade garments sector has already been given special tax incentives.” The proposed hike in tax structure will have a negative impact on the growth of the apparel manufacturing sector, and consequently on creating employment and luring investment.