Export-oriented business sectors, except RMG, have urged the National Board of Revenue (NBR) to fix tax at source for all export sectors at 0.30% like the RMG sector. They also demanded withdrawal of 5% tax on cash incentive provided by the government to boost exports. In the current fiscal year, the government lowered tax at source to 0.30% from 0.80% for the apparel sector, following demand by the RMG leaders in the wake of political unrest. The leaders of business association made the appeal at a pre-budget discussion with NBR Chairman Md Nojibur Rahman at his office yesterday. “Frozen foods are 100% agro-based products having no relation with import, but the sector people have to pay 0.60% tax at source over export value, while the country’s ready-made garment sector pays 0.30% tax at source on export, said Bangladesh Frozen Foods Association President Amzad Hossain. “That is why we should unite and urge the government to treat all equally,” he said. Due to hartal and blockade, production in the frozen food industries suffers due to lack of raw materials, Amzad said, stressing policy support to recover losses. He also urged the government to withdraw the ceiling on shrimp export and to set the incentive on realised prices. Bangladesh Textile Mills Association (BTMA) President Tapan Choudhury urged the government to allow duty-free import of Busbar Trunking System like the Bangladesh Garment Manufacturers and Exporters Association (BGMEA). Tax at source contributes a little to the revenue and that is why it should be withdrawn, said Shahidul Islam, director of FBCCI, and also former president of Bangladesh Plastic Goods Manufacturers and Exporters Association (BPGMEA). BPGMEA also urged the government to lower import tax to 2% from existing 5%. The country’s Terry Towel sector’s export is facing trouble due to unhealthy competition, said Shadat Hossain, director of Bangladesh Terry Towel and Linen Manufacturers and Exporters Association. To help the sector come out of trouble, he urged the government to withdraw tax on incentives and local Letter of Credit and to lower tax to 10% instead of existing 15% on export earnings. “Small and medium business people are exporting jute goods, but last year the NBR through a Statutory Regulatory Order (SRO) increased licence fee to Tk15,000 from Tk11,000, and added 15% VAT to the licence fee, which discourages businessmen, said S Ahmed Majumdar, president of Bangladesh Jute Goods Association claimed. He added that the number of entrepreneurs came down to 300 from 500. Ahmed demanded cash incentives and tax-free export facilities as it is a 100 locally-based industry. Leader of Jute Mills Association urged the government to withdraw tax at source and cash incentives. Responding to the call for incentives by the business community, NBR Member Farid Uddin Ahmed said incentive is a matter that Bangladesh Bank (BB) and the Commerce Ministry deal with. “We can consider the source tax issue and would try to revise it to give cushion to the business community.” Replying to a query about import-related disputes, NBR chairman urged the business community to resolve the disputes through Alternative Dispute resolution (ADR). “We are working on bridging relationship with the business people and to provide them with all-out cooperation to do business.”
