Economic Reporter :
Manufacturers of garment accessories in the country urged upon the relevant authorities to lower corporate tax to 12 per cent in the budget for the fiscal year 2018-19, so that they can remain competitive to global markets.
Currently the accessory manufacturers pay a whopping 35 per cent corporate tax.
Bangladesh Garment Accessories and Packaging Manufacturers and Exporters Association (BGAPMEA) will make the callin its proposal to placed National Board of Revenue (NBR) on April 4 in a pre-budget meeting.
Knitwear and woven manufacturers and exporters pay 12 per cent corporate tax while, RMG manufacturers, who are certified as green building pay 10 per cent said the BGAPMEA in the proposal.
Despite 100 per cent export oriented industry, the garment accessories and packaging manufacturers are paying 35 per cent corporate tax. It is discriminatory to the sector, the platform said.
For the sake of country’s economy and exports, we earnestly urge the government to bring down the tax rate to 12 per cent for the next fiscal year, it added.
Garment accessories industries are considered as the backward linkage industry for the readymade garment sector that contributed nearly 90 per cent to country’s export earnings.
As a backward linkage industry, we are contributing a lot to the overall export earnings of RMG sector. It is unfortunate that we are not getting recognition of our contribution, said BGAPMEA presidentAbdul Kader Khan.
Considering the sector contribution to employment generation and foreign currency earning, the government should offer equal policy support for us, he added.
If the government brings down the corporate tax for the backward linkage industry, the sector will be able to earn more foreign currency, said Kader.
However, the platform also called to bring down tax at source to 0.50 per cent instead of 0.70 per cent and consider it as final tax.
It also urged the government to provide cash incentives, what the other industry enjoy against its export earnings.
Besides deemed export, the garment accessories and packaging products manufacturers are exporting their products directly and if the government provides cash incentives against export, the earning will see a jump, said Kader.
Manufacturers of garment accessories in the country urged upon the relevant authorities to lower corporate tax to 12 per cent in the budget for the fiscal year 2018-19, so that they can remain competitive to global markets.
Currently the accessory manufacturers pay a whopping 35 per cent corporate tax.
Bangladesh Garment Accessories and Packaging Manufacturers and Exporters Association (BGAPMEA) will make the callin its proposal to placed National Board of Revenue (NBR) on April 4 in a pre-budget meeting.
Knitwear and woven manufacturers and exporters pay 12 per cent corporate tax while, RMG manufacturers, who are certified as green building pay 10 per cent said the BGAPMEA in the proposal.
Despite 100 per cent export oriented industry, the garment accessories and packaging manufacturers are paying 35 per cent corporate tax. It is discriminatory to the sector, the platform said.
For the sake of country’s economy and exports, we earnestly urge the government to bring down the tax rate to 12 per cent for the next fiscal year, it added.
Garment accessories industries are considered as the backward linkage industry for the readymade garment sector that contributed nearly 90 per cent to country’s export earnings.
As a backward linkage industry, we are contributing a lot to the overall export earnings of RMG sector. It is unfortunate that we are not getting recognition of our contribution, said BGAPMEA presidentAbdul Kader Khan.
Considering the sector contribution to employment generation and foreign currency earning, the government should offer equal policy support for us, he added.
If the government brings down the corporate tax for the backward linkage industry, the sector will be able to earn more foreign currency, said Kader.
However, the platform also called to bring down tax at source to 0.50 per cent instead of 0.70 per cent and consider it as final tax.
It also urged the government to provide cash incentives, what the other industry enjoy against its export earnings.
Besides deemed export, the garment accessories and packaging products manufacturers are exporting their products directly and if the government provides cash incentives against export, the earning will see a jump, said Kader.
