Staff Reporter :
Exporters Association of Bangladesh (EAB) has demanded withdrawal of the tax at source imposed on the manufacturing sector in the proposed national budget for the fiscal 2015-16.
“It will hinder the natural growth of the country’s readymade sector”, said EAB President Abdus Salam Murshedy while addressing a press conference on ‘Discussion
Meeting on proposed Budget 2015-16′ on Wednesday in the conference room of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) in the city. The press conference was organised by EAB.
In the proposed budget, the Finance Minister AMA Muhith imposed an increase of tax at source from 0.3 to one per cent in the sector.
Justifying his demand for withdrawal of the increased tax at source, Salam Murshedy said, the readymade garment sector is passing through a transformation as various reforms are being effected in the sector following fire at Tazreen Fashions and the Rana Plaza collapse for which entrepreneurs are investing crores of taka.
Businessmen in the country’s apparel sector are not happy with the proposed tax at source in the national budget for 2015-16 fiscal, said the EAB President.
The EAB president said, one per cent export duty imposed on capital machineries will discourage businessmen.
The decisions of imposing or increasing new taxes will contradict with the projected seven per cent GDP growth, he said.
“One per cent tax at source will put the knit and woven sectors at risk anew,” he added.
The EAB president said, increasing tax at source is not logical at this moment as the business community counted ultimate losses in the three months long hartal and blockade earlier this year. He urged the government to reduce proposed tax at source.
He demanded for free of Advance Trade Vat (ATV) on importing pollster fabric, industrial raw material and fire safety materials.
He further demanded to create a fund of Tk 100 crore with a view to developing the skill of manpower in the name of ‘National Human Resource Development Fund’.
Meanwhile, taka has been devalued against Euro and dollars in the last one year. On the other hand, the expenditure of cost has increased. In this situation, businessmen are facing huge troubles for running their business.
First Vice-President of the Federation of Bangladesh Chamber of Commerce and Industry (FBCCI) Shafiul Islam Mohiuddin said, the manufacturing sector is passing a crucial time. In this situation, new tax at source will be very difficult for the traders. “It will be better for the business community to pay the existing rate of tax at source”, he said.
Vice-President of BGMEA Riaz Bin Mahmud, Second Vice-President of BGMEA SM Mannan Kochi and Former President of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) Mohammad Hatem were also present, among others.
Exporters Association of Bangladesh (EAB) has demanded withdrawal of the tax at source imposed on the manufacturing sector in the proposed national budget for the fiscal 2015-16.
“It will hinder the natural growth of the country’s readymade sector”, said EAB President Abdus Salam Murshedy while addressing a press conference on ‘Discussion
Meeting on proposed Budget 2015-16′ on Wednesday in the conference room of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) in the city. The press conference was organised by EAB.
In the proposed budget, the Finance Minister AMA Muhith imposed an increase of tax at source from 0.3 to one per cent in the sector.
Justifying his demand for withdrawal of the increased tax at source, Salam Murshedy said, the readymade garment sector is passing through a transformation as various reforms are being effected in the sector following fire at Tazreen Fashions and the Rana Plaza collapse for which entrepreneurs are investing crores of taka.
Businessmen in the country’s apparel sector are not happy with the proposed tax at source in the national budget for 2015-16 fiscal, said the EAB President.
The EAB president said, one per cent export duty imposed on capital machineries will discourage businessmen.
The decisions of imposing or increasing new taxes will contradict with the projected seven per cent GDP growth, he said.
“One per cent tax at source will put the knit and woven sectors at risk anew,” he added.
The EAB president said, increasing tax at source is not logical at this moment as the business community counted ultimate losses in the three months long hartal and blockade earlier this year. He urged the government to reduce proposed tax at source.
He demanded for free of Advance Trade Vat (ATV) on importing pollster fabric, industrial raw material and fire safety materials.
He further demanded to create a fund of Tk 100 crore with a view to developing the skill of manpower in the name of ‘National Human Resource Development Fund’.
Meanwhile, taka has been devalued against Euro and dollars in the last one year. On the other hand, the expenditure of cost has increased. In this situation, businessmen are facing huge troubles for running their business.
First Vice-President of the Federation of Bangladesh Chamber of Commerce and Industry (FBCCI) Shafiul Islam Mohiuddin said, the manufacturing sector is passing a crucial time. In this situation, new tax at source will be very difficult for the traders. “It will be better for the business community to pay the existing rate of tax at source”, he said.
Vice-President of BGMEA Riaz Bin Mahmud, Second Vice-President of BGMEA SM Mannan Kochi and Former President of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) Mohammad Hatem were also present, among others.
