The association demands the government lower the rate to 10 percent, as Finance Minister AMA Muhith has proposed to raise corporate tax for the garment industry in the budget for fiscal 2018-19.
The corporate tax for the non-listed garment companies is increasing to 15 percent from the existing 12 percent. Listed companies will have to pay 12.5 percent, up from 12 percent.
BGMEA President Siddiqur Rahman told a press conference on Saturday that the proposed hike in corporate tax rate in RMG sector was ‘unacceptable’.
“This will discourage garment entrepreneurs,” he said.
He said he would discuss their demand for 10 percent corporate tax with the ‘top level’ of the government.
Rahman also demanded withdrawal of tax at source on garment exports for the next three fiscal years considering ‘the crisis the sector is facing now’.
He expressed disappointment as Muhith did not shed light on their demand for withdrawal of VAT on products collected from domestic sources for export.
BGMEA Vice-President SM Mannan and other top leaders of the association were also present.