Economic Reporter :
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) on Sunday demanded full withdrawal of tax at source for two years.
The trade body of country’s apparel sector made the demand at a post-budget press conference at its office, as 1 percent tax has been imposed at source for the readymade garments (RMG) in the proposed budget for fiscal year 2017-18.
“Country’s apparel industry is passing through an adverse situation and full removal of tax at source for at least two years is needed to overcome the scenario,” said BGMEA President M Siddiqur Rahman.
Referring to their proposal regarding the tax, he said: “Tax at source was not removed and even reduced. Rather it has been increased to 1 percent from 0.70 percent fixed especially for the RMG which is totally frustrating for us.”
Siddiqur said the new tax will make the business of this sector tougher towards attaining the desired growth.
He requested the finance minister to fix the tax at source at zero percent for next two fiscals.
Welcoming the finance minister’s move of trimming down the corporate tax at 15 percent from 20 percent, the BGMEA President urged the government to cut it to 10 percent considering the competence of RMG at present scenario and continue it for next five years.
“Apart from the existing facilities, we want additional 5 percent cash incentive on the export value of FOB for next two years which will be applicable for only the members of BGMEA and BKMEA to protect country’s apparel industry,” said Siddiqur.
Other leaders of the sector were also present at the press conference.
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) on Sunday demanded full withdrawal of tax at source for two years.
The trade body of country’s apparel sector made the demand at a post-budget press conference at its office, as 1 percent tax has been imposed at source for the readymade garments (RMG) in the proposed budget for fiscal year 2017-18.
“Country’s apparel industry is passing through an adverse situation and full removal of tax at source for at least two years is needed to overcome the scenario,” said BGMEA President M Siddiqur Rahman.
Referring to their proposal regarding the tax, he said: “Tax at source was not removed and even reduced. Rather it has been increased to 1 percent from 0.70 percent fixed especially for the RMG which is totally frustrating for us.”
Siddiqur said the new tax will make the business of this sector tougher towards attaining the desired growth.
He requested the finance minister to fix the tax at source at zero percent for next two fiscals.
Welcoming the finance minister’s move of trimming down the corporate tax at 15 percent from 20 percent, the BGMEA President urged the government to cut it to 10 percent considering the competence of RMG at present scenario and continue it for next five years.
“Apart from the existing facilities, we want additional 5 percent cash incentive on the export value of FOB for next two years which will be applicable for only the members of BGMEA and BKMEA to protect country’s apparel industry,” said Siddiqur.
Other leaders of the sector were also present at the press conference.
