Strongly opposing the government’s move to raise source tax on readymade garment (RMG) export proceeds, leaders of the country’s leading trade bodies Tuesday demanded imposition of a uniform source tax for all export sectors. The businesses at the business advisory council meeting also suggested that the government should ensure smooth supply of natural gas and power and facilitate other infrastructure support for helping enhance competitiveness of local industries in the global market. International Chamber of Commerce, Bangladesh (ICCB) President Mahbubur Rahman, Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) President Kazi Akram Uddin Ahmed, Metropolitan Chamber of Commerce and Industry (MCCI) President Syed Nasim Manzur, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Md Atiqul Islam and its former President Shafiul Islam Mohiuddin, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) President AKM Salim Osman and Dhaka Chamber of Commerce and Industry (DCCI) President Hossain Khaled were, among other business leaders, present at the meeting, held at the Export Promotion Bureau office in the city with commerce minister Tofail Ahmed in the chair. About the government’s move to raise the source tax on apparel export earnings, the BGMEA leaders said if the source tax rate is increased it would create an adverse impact on the country’s apparel sector. They also told the meeting that the local apparel sector had already faced adverse situation as its export receipts sustained a slow growth over the months following political turmoil and impact of other external factors. Considering the situation, they demanded of the government to keep the existing rate (0.30 per cent) of source tax unchanged for the apparel sector. The business leaders raised the issue of source tax before the meeting against the backdrop of disclosure by the finance minister on different occasions that the government has a plan to hike the existing source tax on apparel export earnings in the upcoming budget. The leaders of the BKMEA, on the other hand, also pleaded for rationalising the supplementary duties and make the time- bound policy on tax and value-added tax (VAT). Mentioning that the exporters have to face some problems in getting the government’s export incentive subsidy, they suggested scrapping of the existing audit system for payment of such benefit. Leaders of other export sectors, however, also demanded that the rate of source tax should be the same for all as some other sectors are paying higher rate of 0.60 per cent. They also suggested the government to take timely measures to help flourish and sustain small and medium industries. They also called for allowing local businesses to invest outside the country. Frozen food exporters demanded a separate allocation of Tk 4.60 billion in the next budget for helping the sector face some challenges they are facing. The minister, however, assured that the government would look into their issues. A sub-committee was formed to make recommendations in line with their demands.
Source: https://www.thefinancialexpress-bd.com/2015/05/27/94270
