2018-06-10 05:23:42 BdST
Reduce corporate tax rate to 10pc
The apparel trade body urged the government on Saturday to reduce the proposed corporate tax rate to 10 per cent and withdraw source tax for the sector for next three years.
"Every year the government increases the rates of corporate and source taxes for the country's garment sector. And the tax rates are brought down through discussion with the high-ups of the government," said Md Siddiqur Rahman, president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA).
"Through discussion with top level officials of the government, we will also be able to reduce the tax rates proposed in the budget for the next fiscal year," he said while addressing a post-budget press conference held at its headquarters in the city.
In his budget speech on Thursday, Finance Minister AMA Muhith proposed a 15 per cent corporate tax rate for manufacturers and exporters of the readymade garment sector from existing 12 per cent.
The minister also proposed tax at the rate of 12.5 per cent for the garment factories that are public limited companies.
Besides, tax at the rate of 12.0 per cent has been proposed for the garment factories, having green building certification, from the existing 10 per cent.
As the finance minister did not mention anything about source tax, the RMG sector will have to pay it at the previous rate of 1.0 per cent from the next fiscal year (FY), the BGMEA president said.
The RMG sector contributes 83 per cent to the country's total foreign currency earnings and it is generating more employments in the country, Mr. Rahman said.
"The export sector is free from VAT, but we have to submit VAT returns to the government to get the rebate facility," he said.
He also demanded that the government should rid them of submitting Value Added Tax returns to the VAT offices.
Terming the proposed budget 'business-friendly', the BGMEA president said it would help generate employments in the country.
Unauthorized use or reproduction of The Finance Today content for commercial purposes is strictly prohibited.