BD businesses ask for 0.3pc tax at source on apparel exports17 June 2015 bdnews24.com
Businesses have demanded retaining 0.3 percent tax at source on export of readymade clothing.
Leaders of the associations representing apparel exporters made the demand at a meeting with Finance Minister Abul Maal Abdul Muhith at his Secretariat office on Monday.
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Atiqul Islam placed the demands of the exporters in a written statement. The demands also include withdrawal of one percent duty on capital machinery import, extension of the tax rebate for apparel sector by five more years, waiver of outstanding VAT on service sector and suspension of bonded warehouse audit.
Islam thanked the government for continuation of different facilities and incentives for the garment sector in 2015-16 FY.
He claimed murders of people and arson of vehicles during the BNP-led alliance's agitations had caused apprehension among overseas buyers of Bangladeshi garments.
"Now buyers don't want to come to Bangladesh. That's why export target for the current FY cannot be attained," he said.
The BGMEA chief said Bangladesh exported clothes worth $22.9 billion this FY until Monday against the target of $27 billion for the entire year.
"Export figure will reach $25 billion. Even goods worth $2.1 billion will be exported during rest of this month," he added.
Islam said Bangladeshi apparels were losing competitive edge as taka had been strong against the US dollars.
"In such a situation 1 percent tax at source on total export value will lower competitiveness of the garment industry. That's why we're requesting maintaining tax at source at 0.3 percent like the current fiscal year," he added.
The finance minister did not assure the businessmen of meeting their demands but said he would discuss the matter with the government high-up.
"I don't prepare the budget alone though I present it. We'll discuss the matter," he said.
Hinting at the prime minister, Muhith said: "We two have to discuss the matter. I have to go there. Your market situation will definitely be taken into consideration."
He urged the entrepreneurs in the apparel sector to relocate their industries from the capital to the 'garment village' at Baushia in Munshiganj.