Staff Reporter :
Exporters Association of Bangladesh (EAB) expressed dismay over the proposed budgetary provision of hiking tax at source on exports and imposition of duty on capital machinery import for garment industries.
EAB president Abdus Salam Murshedy in a statement issued on Sunday said: “Hike in tax at source from 0.3 per cent to 1.0 per cent will adversely impact the export sector by reducing competitiveness of local goods in the international market. It will also squeeze hurt profitability of the entrepreneurs”.
He pointed out that export sector is passing through a critical time amid various external and internal threats. The proposal of tax hike does not match with the prevailing condition of the sector.
“In such a situation, the industry cannot afford a leap of tax at source and such a policy will hurt smooth growth of the sector,” he added.
On the other hand, he said, the proposal of imposition 1.0 duty on import of capital machinery for export-oriented garment industries will discourage the entrepreneurs for setting new industries and exposition of their existing plants, hurting smooth growth of the export-oriented industries.
Both these budgetary proposals will put an extra burden for the export industries, he said urging the government to review these proposals for the interest of the export sector.
He also suggested the government to keep the tax at source at the existing level.
He also said that the proposed budget the finance minister made the proposal of VAT exemption on import of fire safety equipment, but he proposed to impose 5.0 per cent duty on such import lead us to further frustration.
“The apparel industry is now facing huge pressure from the global community to improve fire and workplace safely standard. The factory owners are sending a lot to improve the workplace safety.
If the government imposes tax on fire safety equipment import then it will create further burden for them,” he noted.
So, the government should withdraw the proposal of 5.0 per cent duty on import of fire safety equipment, he said.
Murshedy however hailed the government from placing some industry friendly proposals in the budget for the fiscal 2015-16.
Exporters Association of Bangladesh (EAB) expressed dismay over the proposed budgetary provision of hiking tax at source on exports and imposition of duty on capital machinery import for garment industries.
EAB president Abdus Salam Murshedy in a statement issued on Sunday said: “Hike in tax at source from 0.3 per cent to 1.0 per cent will adversely impact the export sector by reducing competitiveness of local goods in the international market. It will also squeeze hurt profitability of the entrepreneurs”.
He pointed out that export sector is passing through a critical time amid various external and internal threats. The proposal of tax hike does not match with the prevailing condition of the sector.
“In such a situation, the industry cannot afford a leap of tax at source and such a policy will hurt smooth growth of the sector,” he added.
On the other hand, he said, the proposal of imposition 1.0 duty on import of capital machinery for export-oriented garment industries will discourage the entrepreneurs for setting new industries and exposition of their existing plants, hurting smooth growth of the export-oriented industries.
Both these budgetary proposals will put an extra burden for the export industries, he said urging the government to review these proposals for the interest of the export sector.
He also suggested the government to keep the tax at source at the existing level.
He also said that the proposed budget the finance minister made the proposal of VAT exemption on import of fire safety equipment, but he proposed to impose 5.0 per cent duty on such import lead us to further frustration.
“The apparel industry is now facing huge pressure from the global community to improve fire and workplace safely standard. The factory owners are sending a lot to improve the workplace safety.
If the government imposes tax on fire safety equipment import then it will create further burden for them,” he noted.
So, the government should withdraw the proposal of 5.0 per cent duty on import of fire safety equipment, he said.
Murshedy however hailed the government from placing some industry friendly proposals in the budget for the fiscal 2015-16.
