Muhith wants source tax raised for Bangladesh’s apparel sector
Staff Correspondent, bdnews24.com
Published: 2015-06-04 20:42:16.0 BdST Updated: 2015-06-04 20:42:16.0 BdST
Source tax in the apparel sector is to be raised to 1.0 percent from the current 0.3 percent in the proposed budget.
Finance Minister AMA Muhith describes this as the “final tax liability” for all export sectors.
He proposed this two-and-half-time hike while presenting budget for the 2015-16 fiscal on Thursday.
He said the tax rates on export proceeds of RMG (readymade garments) and other export items were being slashed to 0.3 and 0.6 percent respectively for one year.
Muhith noted that the textile and garments industry as well as other export commodities were already enjoying various incentives.
“I propose withdrawing the existing facilities and as such impose one percent tax on all export items including garments, terry towel, carton and accessories, jute and jute goods, frozen foods,” he said.
“I would also propose to consider this tax deduction at source (TDS) as the final tax liability for all export sectors.”
The government had last year slashed source tax by 0.5 percent to help the apparel export sector make up for losses it incurred during the 2013 political turmoil and due to a hike in workers’ wages.
At the time, the National Board of Revenue had said the move would cost the government Tk 25 billion.
Garment exporters’ organisation BGMEA has been demanding the retention of the 0.3 percent source tax for five years.
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