Export oriented apparel makers demanded exemption of tax at source for next five years to remain competitive in the global export markets.
Currently, the apparel exporters are paying 0.25% tax at source.
However, the apparel makers also urged the government to reduce corporate tax from 12% to 10% for the next fiscal year.
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) president Md Siddiqur Rahman made the demand on Monday at a pre-budget discussion with National Board of Revenue, fort the fiscal year 2019-20.
“Global buyers are gradually reducing the prices of goods, while the production costs have increased by 29% due rise in workers’ wages since 2010 to 2018. While the manufacturers had to spent a lot in completing the safety remediation,” BGMEA president Md Siddiqur Rahman said.
As a result, it has become very difficult to compete with our competitors. In the given situation, the sector needs withdrawal of tax at source, he argued.
Increasing the investment to attain the $50 billion export earnings from RMG sector, the trade association called for lowering corporate tax from 12% to 10% for the next fiscal year.
BGMEA demanded withdrawal of value added tax (VAT) and 2% stamp duty on RMG export. It also called for withdrawing VAT on export oriented goods and services collected from local sources.
