Kazi Zahidul Hasan :
Leaders of Bangladesh Garments Printers Association (BGPA) expressed their grave concern over the proposed hike in tax at source on the export-oriented industries in the budget proposal for fiscal year (FY) 2015-2016, saying that it will have a negative impact on the sector.
They said, the proposal has come at a time when the country’s export sector has been facing a tough time due to various internal and external factors.
The National Board of Revenue now collects tax at 0.3 per cent on every individual company’s overall annual profit from exports.
Finance Minister AMA Muhith proposed to increase the rate to 1.0 per cent from the next fiscal year.
“It’s a 233 per cent rise and such a hike is completely detrimental to the sector,” Zafar Iqbal Siddique, President of BGPA told The New Nation on Sunday.
He added that the hike in tax at source not only hampers the growth of member factories of BGPA but also other export-oriented industries.
He, however, urged the government not to raise tax at source on their exports and to keep unchanged the current rate of tax considering interest of the industry.
Zafar Iqbal Siddique, a former member of Parliament, also called upon the government to withdraw a proposal for imposing 1.0 per cent duty on capital machinery import.
“If the import duty is not withdrawn, it will discourage the new investment for setting up export-oriented industries,” he noted.
The BGPA President mentioned that their industry is not in a good position now because of rising cost of production and falling export growth.
“We want to pay the tax, but this is not the right time to increase it,” he said adding, “We firstly paid 0.8 per cent tax at source for readymade garments. Later, the government reduced it down to 0.3 per cent.”
He suggested that the government to retain the readymade garment export scenario as before.
Leaders of Bangladesh Garments Printers Association (BGPA) expressed their grave concern over the proposed hike in tax at source on the export-oriented industries in the budget proposal for fiscal year (FY) 2015-2016, saying that it will have a negative impact on the sector.
They said, the proposal has come at a time when the country’s export sector has been facing a tough time due to various internal and external factors.
The National Board of Revenue now collects tax at 0.3 per cent on every individual company’s overall annual profit from exports.
Finance Minister AMA Muhith proposed to increase the rate to 1.0 per cent from the next fiscal year.
“It’s a 233 per cent rise and such a hike is completely detrimental to the sector,” Zafar Iqbal Siddique, President of BGPA told The New Nation on Sunday.
He added that the hike in tax at source not only hampers the growth of member factories of BGPA but also other export-oriented industries.
He, however, urged the government not to raise tax at source on their exports and to keep unchanged the current rate of tax considering interest of the industry.
Zafar Iqbal Siddique, a former member of Parliament, also called upon the government to withdraw a proposal for imposing 1.0 per cent duty on capital machinery import.
“If the import duty is not withdrawn, it will discourage the new investment for setting up export-oriented industries,” he noted.
The BGPA President mentioned that their industry is not in a good position now because of rising cost of production and falling export growth.
“We want to pay the tax, but this is not the right time to increase it,” he said adding, “We firstly paid 0.8 per cent tax at source for readymade garments. Later, the government reduced it down to 0.3 per cent.”
He suggested that the government to retain the readymade garment export scenario as before.
