Apparel makers reiterate demand for source tax withdrawal

Apparel makers reiterate their demand for withdrawal of tax at source for the next two years to overcome the ongoing critical situation. The industry people also urged the government to increase the export incentive to 5% instead of existing 3% for the next five years. Bangladesh Garment Manufacturers and Exporters Association (BGMEA) president Md Siddiqur Rahman came up with the call on Sunday at a press briefing in his reaction to the proposed budget for the Fiscal Year 2017-18. At present, RMG makers are paying 0.70% tax at source. In the current fiscal year, the government proposed 1% tax at source for the apparel industry. Later, it was reduced to 0.70% through a circular, which would expire on June 30 this year. As a result, the clothing industry is likely to fall under the category of 1% tax at source after the time frame. Meanwhile in the proposed budget for FY’18, Finance Minister AMA Muhith on Thursday proposed to cut corporate tax to 15% from 20% for the RMG sector, but the minister did not mention the rate of tax at resource in his budget speech. As of now, the proposed budget is not friendly to the country’s RMG sector, said the BGMEA president. “I think the government will rethink our demands, considering the contribution of the sector.” Former BGMEA president Abdus Salam Murshedy, BGMEA senior vice president Faruque Hassan, vice president Mahmud Hassan Khan Babu were present at the briefing.