Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has urged the government to reduce the tax at source on readymade garment (RMG) exports at 0.25 per cent from the existing 0.50 per cent.
The trade body also demanded to keep the rate (0.25 per cent) unchanged for the next five years, reports BSS.
The leaders of BGMEA, led by its president Rubana Huq, placed the demand during a pre-budget meeting for the next fiscal year (FY22) with the National Board of Revenue (NBR) at the NBR building in the city’s Segunbagicha area on Wednesday.
Alongside the BGMEA, the leaders of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) and Bangladesh Textiles Mills Association (BTMA) also placed their budget proposals.
The BGMEA placed a 16-point recommendation including cancelling the provision for exempting VAT on locally produced products and services and submitting VAT returns, withdrawing tax on cash support, keeping intact the corporate tax rate for this sector for the next five years, removing the complexities arising from HS code, withdrawing duty on import of machinery for industries, simplifying the unloading process of capital machinery and other machinery.
Besides, the BGMEA also proposed simplifying the conditions for importing firefighting equipment for more than one time to expand factories.
While taking part in the budget discussion, Dr Rubana Huq and BKMEA Senior Vice-President Mohammad Hatem highlighted various issues related to customs and value-added tax (VAT).
The leaders of BGMEA and BKMEA informed that the regular exporters are not involved with the misappropriation of the bond facilities; rather a vested quarter is involved in it.
They also assured the revenue board of extending their cooperation for detecting those who are involved in such forgery.
Rubana said, “If the regular exporters are labelled as a thief, then it hurt. This evil practice (misappropriation of bond facilities) should have to be stopped. A vested quarter is involved in it and that should be nabbed.”
Mohammad Hatem urged the NBR to take necessary measures so that this vested quarter could not do business in Bangladesh.
Stressing the need for ensuring full automation to address the situation, NBR Chairman Abu Hena Md Rahmatul Muneem said, “The NBR has advanced a lot in this regard. If the NBR goes into full automation, then the incidents of harassments will decline sharply while the revenue collection process will be simplified.”
BTMA President Mohammad Ali Khokon demanded the government to impose VAT at the same rate on all types of yarn, fixing the tariff value on import of fabric in line with the international market and using the weighing in terms of meter instead of the kilogramme.
