Manufacturers of the country’s garment accessories on Wednesday urged the revenue authority to restrain the tax at source to 0.50 percent from 0.70 percent.The sector leaders made the proposals at a pre-budget meeting arranged by the National Board of Revenue (NBR) at its auditorium in the city.They said, “Being 100 percent export oriented industry, the garment accessories and packaging manufacturers are paying 35 percent corporate tax while RMG makers give 12 percent corporate tax and NBR should consider the matter.”NBR Chairman Md Mosharraf Hossain Bhuiyan presided over the meeting.The RMG maker cut prices of accessories because the prices of raw materials have increased, BGAPMEA president Abdul Kader Khan said in his budget proposal.In remaining competitive, the government should cut tax to 0.5 percent for the sector, he added.He also demanded 12 percent corporate tax for the FY 19 as they currently gave 35 percent corporate tax to boost exports and attracted new investment.“Despite being a fully export oriented industry, the garment accessories and packaging manufacturers are paying 35 percent corporate tax,” said Abdul Kader.Replying to the business leader on tax at source, the NBR chairman said the tax at source for the export oriented sector will set for the next several years, whether it is cut or increased in the next budget.In the meeting, Exporters Association of Bangladesh (EAB), a platform export oriented industry, also urged the government to set a certain percentage tax at source for next five years to help the entrepreneurs to take policy decision.In response to the exporters call, the NBR chairman said they likely are thinking not to bring changes in rate of tax at source. But, they are mulling to set tax at source on the export proceeds instead of exports realised earning.
