Exporters want cut in tax at source

Exporters have urged the government to set tax at source at 0.25% instead of the 1% proposed in the fiscal year 2017-18 budget, and to hold this rate for the next five years. The current rate of tax at source is set at 0.70% as per the statutory regulatory order (SRO) issued on August 10, 2016. But the order will expire on July 1, 2017. “The government should consider the decision in the budget and reduce the rate to 0.25%,” said Exporters Association of Bangladesh (EAB) President Abdus Salam Murshedy on Monday. He demanded the government reduce the corporate tax for the apparel industry to 10% from the proposed 15%, to boost investment and employment generation. While placing the national budget for the FY2017-18 in Parliament on Thursday, Finance Minister AMA Muhith proposed to reduce the corporate tax rate for the apparel makers to 15% from the existing 20%. The EAB president also urged the finance minister to introduce a “special monetary policy” for the export-oriented industries to help investment growth. Abdus Salam also urged Muhith to provide garment exporters with an additional 5% cash incentive apart from the existing facilities for the next two years. He said such initiative will help the sector overcome the ongoing “critical situation.”