Current tax system discourages investment: BKMEA President

Dhaka,  8 Feb--Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) President Mohammad Hatem has said the current tax system discourages investment, and called for substantial reforms in the tax structure.

The BKMEA president was speaking on Saturday as the chief guest at the biennial general meeting of the Bangladesh Labour Rights Journalists Forum (BLRJF) at Tamanna World Family Park in Dhaka. BLRJF President Kazi Abdul Hannan chaired the meeting, with its General Secretary Ataur Rahman overseeing the programme.

Hatem said, “The NBR imposed multiple taxes on businessmen. For instance, when raw materials are imported, customs collect advance income tax (AIT) along with duties. At the end of the year, a businessman files a tax return, and upon calculating their business volume, they may find that their tax liability is Tk 40. However, the NBR had already collected Tk 100 as AIT, with the understanding that it would be adjusted against the total tax liability at the end of the year. Similarly, the NBR also imposed a 30% surcharge on a businessman's profits.”

“This complex tax system is discouraging for investors, and current businesses are not interested in expanding into new ventures,” he said.

The interim government must focus on attracting more investment, creating additional jobs, and fostering industrial growth, the BKMEA president said.

He also criticised the increase in gas and electricity prices without ensuring adequate supply to industrial units.

There is a need for formulating actionable policies through consultations with businessmen and other stakeholders, added the BKMEA president.

Hatem, also managing director of MB Knit Fashion Limited, said most businessmen want their workers to receive fair wages. “This will help increase production and foster industry growth. However, international buyers focus only on trade unions. If they do not offer fair and ethical prices for Bangladeshi products, it will be impossible to ensure the rights of workers.”

Also present at the event were BLRJF Joint General Secretary Md Alamgir Hossain, Deputy Director of Programmes at the Bangladesh Labour Foundation (BLF) Mahmudul Hasan Khan, and General Secretary of the Bangladesh Tannery Workers Union Abdul Malek.