• Friday, Nov 22, 2019
  • Last Update : 01:32 pm

BGMEA demands exemption of tax at source

  • Published at 06:33 pm April 2nd, 2019
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Currently, the apparel exporters are paying 0.25% tax at source

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.