UNB, Dhaka :
Commerce Minister Tofail Ahmed on Tuesday suggested keeping tax at source on export at 0.6 percent saying it is not the right time to increase it as exporters will face a fresh challenge following the fast-changing scenario in Europe.
“Our exporters will face a challenge as pound sterling and Euro are getting weak against dollars following Brexit,” he told Parliament on Tuesday urging Prime Minister Sheikh Hasina and Finance Minister AMA Muhith not to increase the source tax on export. The current tax at source on export is 0.6 percent, while the Finance Minister proposed it to be 1.5 percent in the coming budget. “It shouldn’t be increased at this moment,” Tofail said. He said Bangladesh’s neighbour India is trying to take the second position in the global apparel market. “India has announced a Rs 6,000-crore incentive package for the readymade garment sector,” he said justifying his stance on keeping source tax at a lower level.
The minister said, the exporters will face double sufferings since the pound sterling and Euro are being devalued against the dollar. As the majority people of the United Kingdom voted to leave the European Union (EU), Bangladesh will have to re-negociate trade issues with the UK, said the Commerce Minister.
Bangladesh has been enjoying duty- and quota-free benefit in the EU market under the Everything but Arms (EBA) arrangement, and the UK is a big market for Bangladesh.
All the business bodies, including apex trade body Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) and Bangladesh Garment Manufacturers and Exporters Association of Bangladesh (BGMEA), have been demanding that the tax at source on export be reduced since the Finance Minister proposed it to be 1.5 percent.
Commerce Minister Tofail Ahmed on Tuesday suggested keeping tax at source on export at 0.6 percent saying it is not the right time to increase it as exporters will face a fresh challenge following the fast-changing scenario in Europe.
“Our exporters will face a challenge as pound sterling and Euro are getting weak against dollars following Brexit,” he told Parliament on Tuesday urging Prime Minister Sheikh Hasina and Finance Minister AMA Muhith not to increase the source tax on export. The current tax at source on export is 0.6 percent, while the Finance Minister proposed it to be 1.5 percent in the coming budget. “It shouldn’t be increased at this moment,” Tofail said. He said Bangladesh’s neighbour India is trying to take the second position in the global apparel market. “India has announced a Rs 6,000-crore incentive package for the readymade garment sector,” he said justifying his stance on keeping source tax at a lower level.
The minister said, the exporters will face double sufferings since the pound sterling and Euro are being devalued against the dollar. As the majority people of the United Kingdom voted to leave the European Union (EU), Bangladesh will have to re-negociate trade issues with the UK, said the Commerce Minister.
Bangladesh has been enjoying duty- and quota-free benefit in the EU market under the Everything but Arms (EBA) arrangement, and the UK is a big market for Bangladesh.
All the business bodies, including apex trade body Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) and Bangladesh Garment Manufacturers and Exporters Association of Bangladesh (BGMEA), have been demanding that the tax at source on export be reduced since the Finance Minister proposed it to be 1.5 percent.
