Economic Reporter :
The government has decided to withdraw the tax imposed on the Workers’ Profit Participation Fund (WPPF) in response to an urge from the Foreign Investors’ Chamber of Commerce and Industry (FICCI)
FICCI feared labour unrest due to imposition of the tax on the WPPF.
A Finance Division official said finance secretary has signed the summary paper of the tax withdrawal from the WPPF. On his return from abroad, Finance Minister AMA Muhith will sign the summary.
FICCI President Rupali Chowdhury in last February urged the government to withdraw the tax imposed on the WPPF.
Then Finance Division made the decision to cancel the tax after discussing the issue with officials of the National Board of Revenue, the Ministry of Labour and Employment and the Ministry of Law and Parliamentary Affairs.
According to the summary, in the amendment of the labour law the word “worker” will be replaced with “any person” as beneficiary.
The summary said after replacement of several words in the amendment of the labour, the problem related to tax imposition on the WPPF will be solved.
After the Tazreen Fashions fire and Rana Plaza building collapse, the government amended the labour law 2006 in July 2013, allowing full freedom of association in the factories.
After amendment, the trade union registration in the garment sector gained momentum.
Training programmes started for the office bearers of the newly formed unions, with technical assistance from the International Labour Organisation.
The government has decided to withdraw the tax imposed on the Workers’ Profit Participation Fund (WPPF) in response to an urge from the Foreign Investors’ Chamber of Commerce and Industry (FICCI)
FICCI feared labour unrest due to imposition of the tax on the WPPF.
A Finance Division official said finance secretary has signed the summary paper of the tax withdrawal from the WPPF. On his return from abroad, Finance Minister AMA Muhith will sign the summary.
FICCI President Rupali Chowdhury in last February urged the government to withdraw the tax imposed on the WPPF.
Then Finance Division made the decision to cancel the tax after discussing the issue with officials of the National Board of Revenue, the Ministry of Labour and Employment and the Ministry of Law and Parliamentary Affairs.
According to the summary, in the amendment of the labour law the word “worker” will be replaced with “any person” as beneficiary.
The summary said after replacement of several words in the amendment of the labour, the problem related to tax imposition on the WPPF will be solved.
After the Tazreen Fashions fire and Rana Plaza building collapse, the government amended the labour law 2006 in July 2013, allowing full freedom of association in the factories.
After amendment, the trade union registration in the garment sector gained momentum.
Training programmes started for the office bearers of the newly formed unions, with technical assistance from the International Labour Organisation.
