BGMEA urges govt to reduce ‘source tax’

Terming some initiatives of the national budget for fiscal 2016-17 as encouraging for industrialisation, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) yesterday said the proposed 1.50 per cent tax at source would hinder the goal of export earning envisaged by the government in line with vision-2021, reports BSS. "Some initiative might pave the way of industrialisation, but 1.50 per cent tax at sources would directly create hindrance the evolvement of industrialisation," said BGMEA president Siddiqur Rahman in a press briefing that organised to pass their reaction on the proposed national budget. Mentioning that 1.50 per cent tax at source would increase 150 per cent direct tax, he said "any wrong decision would lead many factories towards shut-down" as already 618 factories have been closed for losing competency while another 319 factories are in the way to stop operation.
In this context, the BGMEA president said, they are advocating to keep the tax at source at 0.30 per cent like the fiscal 2014-15. "We are proposing to keep it 0.30 per cent, if it is not possible to fix the tax at source at 0.60 per cent to allow the sector to move ahead." Highlighting different challenges such as conditions of Accord and Alliance, Siddiqur Rahman said: "We need another two years to stand back overcoming the losses caused by Rana Plaza tragedy."
Welcoming the incenting of Tk 4,500 crore for all export oriented sectors, he demanded Tk 5,000 stimulating package only for the readymade garment (RMG) sector. About the reduction of corporate tax to 20 per cent from 35 per cent, the BGMEA president said "We requested the government to reduce the corporate tax to 10 per cent for developing competency in the sector. So we hoped government would revise it."
They sought an energy policy for next ten years for boosting of the sector. Others leaders of the RMG trade body were present at the briefing. Finance Minister Abul Maal Abdul Muhith on Thurday proposed to allocate Tk 4,500 crore in the new national budget as incentives for exports and tax cut for garments and other sectors. In his budget speech in the Jatiya Sangsad this afternoon, he said despite sluggish global market, exports so far posted satisfactory growth.
"We are continuing to provide incentives for encouraging export and market diversification. I propose to allocate a total of Tk 4,500 crore as incentives for export including Tk 500 for jute goods," he said.
Muhith said ready-made garment (RMG) sector is one of the main exporting sectors of Bangladesh. This sector is making important contribution to the GDP growth and employment generation, he said.
"As part of our continued support, I propose to reduce the tax rate of the RMG sector from 35 per cent to 20 per cent," he added.

 

BGMEA urges govt to reduce source tax

Terming some initiatives of the national budget for fiscal 2016-17 as encouraging for industrialisation, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) yesterday said the proposed 1.50 per cent tax at source would hinder the goal of export earning envisaged by the government in line with vision-2021, reports BSS. Some initiative might pave the way of industrialisation, but 1.50 per cent tax at sources would directly create hindrance the evolvement of industrialisation, said BGMEA president Siddiqur Rahman in a press briefing that organised to pass their reaction on the proposed national budget. Mentioning that 1.50 per cent tax at source would increase 150 per cent direct tax, he said any wrong decision would lead many factories towards shut-down as already 618 factories have been closed for losing competency while another 319 factories are in the way to stop operation. In this context, the BGMEA president said, they are advocating to keep the tax at source at 0.30 per cent like the fiscal 2014-15. We are proposing to keep it 0.30 per cent, if it is not possible to fix the tax at source at 0.60 per cent to allow the sector to move ahead. Highlighting different challenges such as conditions of Accord and Alliance, Siddiqur Rahman said: We need another two years to stand back overcoming the losses caused by Rana Plaza tragedy. Welcoming the incenting of Tk 4,500 crore for all export oriented sectors, he demanded Tk 5,000 stimulating package only for the readymade garment (RMG) sector. About the reduction of corporate tax to 20 per cent from 35 per cent, the BGMEA president said We requested the government to reduce the corporate tax to 10 per cent for developing competency in the sector. So we hoped government would revise it. They sought an energy policy for next ten years for boosting of the sector. Others leaders of the RMG trade body were present at the briefing. Finance Minister Abul Maal Abdul Muhith on Thurday proposed to allocate Tk 4,500 crore in the new national budget as incentives for exports and tax cut for garments and other sectors. In his budget speech in the Jatiya Sangsad this afternoon, he said despite sluggish global market, exports so far posted satisfactory growth. We are continuing to provide incentives for encouraging export and market diversification. I propose to allocate a total of Tk 4,500 crore as incentives for export including Tk 500 for jute goods, he said. Muhith said ready-made garment (RMG) sector is one of the main exporting sectors of Bangladesh. This sector is making important contribution to the GDP growth and employment generation, he said. As part of our continued support, I propose to reduce the tax rate of the RMG sector from 35 per cent to 20 per cent, he added.