Kazi Zahidul Hasan :
The government plans to raise tax at source on apparel exports in an attempt to enhance its revenue collection in the new fiscal year, starting from July 1, official sources said.
They said, the garment and textile sector is the most dynamic sector in Bangladesh, but it is depositing less tax in the national exchequer, forcing the government to review the tax rate on the sector.
Earlier, Finance Minister AMA Muhith at a pre-budget discussion said that tax at source for readymade garment (RMG) export might be increased in the next budget (2015-16).
“The National Board of Revenue (NBR) has already outlined a plan to enhance the tax on apparel exports in the next budget,” a senior finance ministry official working on budget preparation told The New Nation (NN) on Sunday.
He said that the government increased the tax rate from 0.25 per cent to 0.8 per cent in fiscal 2013-14, but later slashed by 0.5 per cent to make up the losses it incurred during the 2013 political turmoil and hike in workers’ wages.
“Such deduction in tax rate had caused the government to incur Tk 2500 crore revenue losses,” he added.
The official according to the NBR is now collecting a 0.3 per cent source tax on garment exports. The upcoming budget may increase the tax rate to 0.5 per cent from that of the current level.
“The tax will be raised as part the government plan to bring reform in its tax policies. The move will help the government collect additional revenues,” he added.
“It will be completely detrimental to the industry if the government hikes tax at source on apparel export,” Reaz-Bin-Mahmood, Vice-President of BGMEA told The NN.
“So, a hike in tax on apparel exports could help deepen the crisis of the industry further,” he warned.
The BGMEA leader also urged the government to refrain from such a move considering interest of the industry.
The government plans to raise tax at source on apparel exports in an attempt to enhance its revenue collection in the new fiscal year, starting from July 1, official sources said.
They said, the garment and textile sector is the most dynamic sector in Bangladesh, but it is depositing less tax in the national exchequer, forcing the government to review the tax rate on the sector.
Earlier, Finance Minister AMA Muhith at a pre-budget discussion said that tax at source for readymade garment (RMG) export might be increased in the next budget (2015-16).
“The National Board of Revenue (NBR) has already outlined a plan to enhance the tax on apparel exports in the next budget,” a senior finance ministry official working on budget preparation told The New Nation (NN) on Sunday.
He said that the government increased the tax rate from 0.25 per cent to 0.8 per cent in fiscal 2013-14, but later slashed by 0.5 per cent to make up the losses it incurred during the 2013 political turmoil and hike in workers’ wages.
“Such deduction in tax rate had caused the government to incur Tk 2500 crore revenue losses,” he added.
The official according to the NBR is now collecting a 0.3 per cent source tax on garment exports. The upcoming budget may increase the tax rate to 0.5 per cent from that of the current level.
“The tax will be raised as part the government plan to bring reform in its tax policies. The move will help the government collect additional revenues,” he added.
“It will be completely detrimental to the industry if the government hikes tax at source on apparel export,” Reaz-Bin-Mahmood, Vice-President of BGMEA told The NN.
“So, a hike in tax on apparel exports could help deepen the crisis of the industry further,” he warned.
The BGMEA leader also urged the government to refrain from such a move considering interest of the industry.
