BGEMA for reducing tax, VAT on RMG

Bangladesh Garment Manu-facturers and Exporters Association (BGMEA) yesterday called upon the government to extend the reduced tax rate of 10 per cent on readymade garment (RMG) for next five years, reports BSS.
Besides, it also made a plea to cut the tax on sources for the RMG sector like the fiscal year 2014-15.
"RMG attained 10 per cent growth in first 10 months of the current financial year due to some strong measures taken by the government, but it's not sufficient to achieve the export goal of US$ 50 billion by 2021, that's why the government should provide policy support to the sector," BGMEA President Siddiqur Rahman told newsmen at a press conference at BGMEA office.
Mentioning that Bangla-desh has attained average 10 per cent growth in the RMG sector in last five years, he said: "We are lagging behind by 3.19 per cent than average growth and 5.19 per cent from the desired $50 billion by 2021. So we've to achieve double growth than the average growth rate to realize the target."
The BGMEA president said hundred per cent export industry is out of the VAT net, but export incentive services are listed for VAT.
"We are requesting the government to exclude those services from VAT net."
Terming Bangladesh as an earthquake prone country, Siddiqur Rahman demanded duty-free import of fire extinguishing and modern power saving equipment for safe, compliant and environment-friendly factory.
Advocating for reducing corporate tax for the RMG sector, he said the sector could not go ahead by paying 35 per cent tax.
Stressing importance for an "energy policy" in the country, the BGMEA president said a total of 197 factories would not go into operation due to gas crisis.
BGMEA First Vice President Faruque Hassan, Vice President S M Mannan (Kochi), Vice President (Finance) Mohammad Nasir and other directors were present at the press conference.

BGEMA for reducing tax, VAT on RMG

Bangladesh Garment Manu-facturers and Exporters Association (BGMEA) yesterday called upon the government to extend the reduced tax rate of 10 per cent on readymade garment (RMG) for next five years, reports BSS. Besides, it also made a plea to cut the tax on sources for the RMG sector like the fiscal year 2014-15. RMG attained 10 per cent growth in first 10 months of the current financial year due to some strong measures taken by the government, but its not sufficient to achieve the export goal of US$ 50 billion by 2021, thats why the government should provide policy support to the sector, BGMEA President Siddiqur Rahman told newsmen at a press conference at BGMEA office. Mentioning that Bangla-desh has attained average 10 per cent growth in the RMG sector in last five years, he said: We are lagging behind by 3.19 per cent than average growth and 5.19 per cent from the desired $50 billion by 2021. So weve to achieve double growth than the average growth rate to realize the target. The BGMEA president said hundred per cent export industry is out of the VAT net, but export incentive services are listed for VAT. We are requesting the government to exclude those services from VAT net. Terming Bangladesh as an earthquake prone country, Siddiqur Rahman demanded duty-free import of fire extinguishing and modern power saving equipment for safe, compliant and environment-friendly factory. Advocating for reducing corporate tax for the RMG sector, he said the sector could not go ahead by paying 35 per cent tax. Stressing importance for an energy policy in the country, the BGMEA president said a total of 197 factories would not go into operation due to gas crisis. BGMEA First Vice President Faruque Hassan, Vice President S M Mannan (Kochi), Vice President (Finance) Mohammad Nasir and other directors were present at the press conference.