Dhaka, Bangladesh (BBN)- The International Labour Organisation (ILO) has urged the government to waive around US$1.0 million value-added tax generated from the spending on a project involving the readymade garment factory inspection, officials said.
The ILO made the appeal to the finance ministry through the labour and employment ministry saying that development partners were giving $7.5 million for the purpose of factory inspection.
But they are not willing pay the VAT, the New Age, a local newspaper, reported quoting officials.
The ministry officials said the ILO hinted at further investment by the development partners from countries like the UK, Japan and Canada for repairing faults at the factory buildings.
The further investment depends on a waiver of the VAT, said the officials adding that the factory compliance issue was also linked with the demand for duty-free access of the RMG products to the US market.
The government has taken a three-and-a-half-year initiative under the ILO’s programme for ‘improving working conditions in the readymade garment sector’ to ensure fire, electrical and building safety.
The collapse of Rana Plaza with the death of 1,136 garment workers in April 2013, less than six months after a fire at Tazreen Fashions on November 24, 2012, resulted in the urgent need for Bangladesh’s 3,500 RMG units to be checked for structural and fire safety.
A team comprising teachers of Bangladesh University of Engineering and Technology has been appointed for the inspection job of more than 1,500 RMG factories after the inspection of 1,800 factory buildings.
BBN/SSR/AD-19Oct14-8:20 am (BST)
