• Friday, Oct 22, 2021
  • Last Update : 12:13 pm

Budget FY21: Source tax for RMG increases to 0.5%

  • Published at 03:51 pm June 11th, 2020
Web_Tax-taxation-Bigstock
Bigstock

Currently, the sector enjoys 0.25% source tax for the outgoing fiscal year

Tax at source for the country’s apparel sector, the $34 billion industry, increased to 0.5% from 0.25% for the 2020-21 fiscal year. 

Currently, the sector enjoys 0.25% source tax for the outgoing fiscal year.

“Exports of goods and services, including that of RMG, have faced a downturn due to the outbreak of the Covid-19 pandemic. I, therefore, propose to reduce the rate of withholding tax on export proceeds as a part of extending overall support to our export sector,” said Finance Minister AHM Mustafa Kamal on Thursday while announcing the national budget for FY2020-21 in the parliament.

The existing rate of collecting withholding tax on all sorts of export proceeds including that of RMG as stipulated in the Income Tax Ordinance is 1% that has further been reduced through an SRO, which continues to be in force till June 30, 2020, said Kamal.

I propose to amend the Ordinance to fix the rate of withholding tax on all sorts of export proceeds including that of RMG at 0.5% instead of the existing rate of 1%, he added. 

However, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) had demanded to keep the rate unchanged.

59
Facebook 57
blogger sharing button blogger
buffer sharing button buffer
diaspora sharing button diaspora
digg sharing button digg
douban sharing button douban
email sharing button email
evernote sharing button evernote
flipboard sharing button flipboard
pocket sharing button getpocket
github sharing button github
gmail sharing button gmail
googlebookmarks sharing button googlebookmarks
hackernews sharing button hackernews
instapaper sharing button instapaper
line sharing button line
linkedin sharing button linkedin
livejournal sharing button livejournal
mailru sharing button mailru
medium sharing button medium
meneame sharing button meneame
messenger sharing button messenger
odnoklassniki sharing button odnoklassniki
pinterest sharing button pinterest
print sharing button print
qzone sharing button qzone
reddit sharing button reddit
refind sharing button refind
renren sharing button renren
skype sharing button skype
snapchat sharing button snapchat
surfingbird sharing button surfingbird
telegram sharing button telegram
tumblr sharing button tumblr
twitter sharing button twitter
vk sharing button vk
wechat sharing button wechat
weibo sharing button weibo
whatsapp sharing button whatsapp
wordpress sharing button wordpress
xing sharing button xing
yahoomail sharing button yahoomail