BGMEA urges govt to review corporate tax, VAT
DHAKA, June 9, 2018 (BSS) – Bangladesh Garment Manufacturers and Exporters Association (BGMEA) today requested the government to reconsider the proposed corporate tax, source tax and VAT in the budget so the apparel sector could cope with the existing adverse situation.
In a post budget reaction, BGMEA President Siddiqur Rahman said corporate tax rate has been increased to 15 percent from 12 percent while it has been proposed 12 percent for green industry from the 10 percent although BGMEA requested to fix it at 10 percent lowering from 12 percent for all.
“We think the increased corporate tax rate would discourage the entrepreneurs of the apparel sector,” he said.
Siddiqur urged the government to reconsider the corporate tax rate by fixing it 10 percent to continue the growth of the sector.
In the press conference at BGMEA office, he said BGMEA made the demand for withdrawing full source tax on export for next three years considering the existing crisis for the readymade garment.
“As there is no specific directive on source tax in the proposed budget, 1 percent tax would be imposed automatically at source on export,” said the BGMEA President.
The BGMEA leader urged the government to address the source tax as they pursue to decrease it every year after budget proposal through discussion.
He, however, hoped these issues would be solved through discussion with the high ups of the government.
Siddiqur said BGMEA had made a proposal to the government to give the apparel sector exemption from return submission along with VAT for export oriented products and services collected locally.
But, the issue would not be addressed in the proposed budget, he added.
The BGMEA President said the country has attained primary qualification for becoming a developing nation and has to face challenges in international market when it will become the developing nation finally in 2027. “To face the challenges, we have to minimize business cost and it would be possible only with the policy support, but we did not get any reflection for it in the budget,” he observed.
He also requested the government to treat the apparel industry as an employment generating sector, not as a source of tax.
BGMEA Vice President S M Mannan Kochi and other office bearers were present.