Apparels and textiles federations object to rise in source-tax

Apparels and textiles federations object to rise in source-tax

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The top five federations of the apparels and textiles sector on Saturday reiterated a call to incorporate their proposals including reducing source tax on export items in the proposed budget to help grow the textiles and readymade garment sectors in the country.“It won’t be wise to impede the growth of the industry by imposing extra tax burden and making business complex,” BGMEA President Md Siddiqur Rahman told a joint press conference at its conference room.Leaders of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), Bangladesh Textiles Mills Association (BTMA), Bangladesh Terry Towel and Linen Manufacturers and Exporters Association (BTTLMEA) and Bangladesh Garments Accessories and Packaging Manufacturers and Exporters Association (BGAPMEA) were present.

Reading out joint statement at the press conference, the BGMEA president said none of the 10 proposals placed before the budget on behalf of the garments industry family was addressed fully in the proposed budget.The leaders of the five federations reiterated that they want 0.3 percent tax at source on export.The tax imposed on exports at source was 0.3 percent in the 2014-2015 fiscal, and raised to 0.6 percent in the outgoing fiscal (2015-16).Finance Minister AMA Muhith proposed 1.50 percent tax at source on export for the coming fiscal year.The leaders of the apparels and textiles sector think such a proposal will surely impede the industry’s growth, especially if it is imposed on apparel exports.“Source tax on exports should be fixed at 0.3 percent. If it is not possible, continue the existing 0.6 percent rate,” said the BGMEA president on behalf of all other bodies.The BGMEA president thanked the government for reducing corporate tax in the RMG sector to 20 percent from 30 percent.However, the apparel makers had a desire to see 10 percent corporate tax. “We still want that the government will make it 10 percent like in the past.”Former BGMEA President and FBCCI vice President M Shafiul Islam Mohiuddin, BKMEA leader AH Aslam Sunny and BGMEA Senior Vice President Faruque Hassan, Vice Presidents SM Mannan (Kochi) and Mohammed Nasir, among others, were present.
source:UNB

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