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Exporters urge govt to lower tax at source for RMG exports

  • Senior Correspondent,  bdnews24.com
    Published: 2015-06-18 17:45:04 BdST

bdnews24

Exporters in Bangladesh have asked the government to keep the tax at source on readymade garment exports at 0.3 percent.

President of the Exporters Association of Bangladesh (EAB) Abdus Salam Murshedi expressed his interests at a press conference on Thursday.

Finance Minister AMA Muhith has proposed in the 2015-16 FY budget to raise the tax at source on export of readymade garments to one percent from the present 0.3 percent.

Exporters Association has also raised objections to proposed at-source tax increase for other exports.

Murshedi said at the conference, “The increase will adversely affect the current flourishing export scenario.

“That is why we are requesting (the government) to bring down the tax at source to 0.3 percent for all exported goods.”

At present, the readymade garments sector accounts for 80 percent of Bangladesh’s total exports.

During the first nine months of the current fiscal year, this sector has seen a three percent increase, which is less than that of the last few years.

Former president of the BGMEA, Murshedi said the production cost due to compliance and wages has increased but garment prices have not.

“We want to pay the tax, but this is not the right time to increase it.”

Former BGMEA president and present FBCCI Vice President Shafiul Islam Mohiuddin has also expressed his resentment against the tax hike.

“Earlier, we had given 0.8 percent tax at source for readymade garments. Later, the government had brought it down to 0.3 percent.”

Mohiuddin suggested that the government should retain the readymade garment export scenario as it was before the tax increase.

The association also demanded the withdrawal of the one percent duty on capital machinery import and urged that it be brought down to zero as before.

However, Murshedi welcomed the changes in the proposed budget that would play a positive role in export of readymade garments.

“Nonetheless, some more changes and corrections are needed to be brought to the proposed budget that will be beneficial to the exports of goods,” he added.