Special Correspondent :
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has urged the government to exempt the garment industry from tax at source for at least three more years.
It made the call during a pre-budget discussion with National Board of Revenue (NBR) on Tuesday. NBR Chairman Md Mosarraf Hossain Bhuiyan presided over the meeting held at its headquarters in Dhaka.
BGMEA, the apex trade body of apparel exporters, also raised the demand for restructuring the current corporate tax regime in the next budget for 2018-19 fiscal.
In its 11-point demands, BGMEA has also sought slashing of corporate tax to 10 per cent from the existing 12 per cent for the three years starting next fiscal year.
Furthermore, the trade body urged the government to frame a long-term tax policy for the sector, as frequent changes in the policy is creating discontent for the exporters.
“The tax policy for the garment sector should be made for a minimum of five-year period. Changes in policy every year create a lot of problems for the entrepreneurs,” said BGMEA President M Siddiqur Rahman.
He said, rationalization of corporate tax and exemption of tax at source is necessary to create a breathing space for the apparel industry, which is now struggling to stay competitive in global arena due rising cost of production.
He also suggested for an equal tax measures for all the export sub-sectors.
BGMEA President during the discussion raised the issue of ‘harassment’ by taxmen in the name of audit requesting the NBR Chairman to look at the issue for creating a more business-friendly tax-regime.
BGMEA also sought exemption from VAT on products and services used locally by export-oriented garment industries, and duty-free import facility for the capital machinery, fire preventive and energy savings equipment and spare-parts and CC cameras, VAT exemption on gas, electricity and water bills, conducting audit in two years instead of one year and increasing the time to six months from existing three to provide related documents.
NBR Chairman Md Mosarraf Hossain Bhuiyan gave patience hearing to the demands of BGMEA and said the revenue board will extent the same facility for all the export -oriented industries to boost exports.
“And it is crucial for Bangladesh to elevate itself to the developing country status from least developed one.”
