Buying houses face tough times amid corona crisis

Sohel Hossain Patwary

24th June, 2020 10:04:23 printer

Buying houses face tough times amid corona crisis

As the export-oriented industries including the garment factories are struggling due to a steep fall in export orders, buying houses are struggling to survive the corona crisis. 

Due to the slowdown in garment the industry over the last four months, around one lakh people have lost their job as many buying houses were forced to shut their businesses.

Buying houses work as a mediator between buyers (retailers) and clothing manufacturers. Around 1,000 buying houses are operating in Bangladesh, contributing to the country’s garment exports.

Eighty-five per cent of the country’s export earnings come from the readymade garment sector. As factories are not getting new orders from the global buyers due to a sharp decline in global trade caused by the coronavirus pandemic, buying houses are on the verge of collapse.

Considering the facts and situation, leaders of the buying house association have sought loans on relaxed terms and to lower the advance income tax to five per cent.

Amid the loss and shut down of buying houses, Bangladesh Garments Buying House Association (BGBA) has sought cooperation from the government and banks to help the entrepreneurs survive the crisis.

They said the government has declared stimulus packages for various sectors to help the country’s economy overcome the crisis created by the coronavirus impact.

But due to lack of specific guidelines, the buying houses are being deprived of any assistance from the stimulus package.

Kazi Iftekhar Hossain, president of BGBA, said export-oriented companies depend on buying houses as they work as the supporting agencies.

The BGBA president said they have urged the government to reduce tax at source, advance income tax for them and extending tax holiday facility for new entrepreneurs to help them overcome the crisis.

 Md Waliullah, managing director of Multitex Sourcing Ltd, said buying activities have come down to a almost halt that pushed them to a difficult situation.

Cooperation from global buyers and government sides are required to fight the crisis, he added.