Sheikh Hasina urged finance minister to fix source tax for all export-oriented industries – including the garment sector – at 0.60% instead of the 1% rate proposed.
The premier made the request to AMA Muhith in parliament yesterday.
Currently, the clothing industry owners pay 0.30% tax at source, while the other export-oriented industries including jute products, frozen foods, leather goods and packed foods pay 0.60% tax.
Finance Minister Muhith, in his budget speech on June 4 at parliament, had proposed the uniform rate of tax at 1%.
“We are happy at the decision, but the tax rate is not time-befitting considering the global business context,” Exporters Association of Bangladesh President Abdus Salam Murshedy told the Dhaka Tribune.
“Fixing tax at source at 0.60% will help the RMG sector but we are urging the government to treat it as the final tax,” said BGMEA Vice-President Shahidullah Azim.
To get more revenue, the government should expand its tax net instead of imposing more tax than the sector could afford, he added.
