BGMEA on Saturday demanded a reduction of proposed corporate tax to 10 per cent and withdrawal of source tax for the next three years for the apparel sector.
Md Siddiqur Rahman, president of BGMEA made the demands to the government at a press conference on the proposed budget for the fiscal year of 2018-19 held at its headquarters in the city.
Finance minister AMA Muhith in his budget speech on Thursday proposed 15 per cent corporate tax rate for manufacturers and exporters of readymade garments from existing 12 per cent.
The minister has also proposed 12.5 per cent tax for the garment factories that are public limited companies.
Besides, 12.0 per cent tax has been proposed for the garment factories having green building certification from existing 10 per cent.
As the finance minister did not mention anything regarding the source tax, RMG sector has to pay it at the previous rate of 1.0 per cent from the next fiscal year, said Mr Rahman.
Bangladesh Garment Manufacturers and Exporters Association president also urged to withdraw source tax for next three years.
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