Readymade garment exporters have demanded to the government to reduce tax at source to 0.5% from existing 0.7% on export of apparel products. They also requested to consider it to be the final settlement from the budget for fiscal year 2017-18. The sector raised a total of 12-point demand for the upcoming budget for fiscal year 2017-18. Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has made the demands on the sector written proposals to the National Board of Revenue (NBR) for the upcoming budget for fiscal year 2017-18. According to the NBR , Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Bangladesh Garments Accessories and Packaging Manufacturers and Exporters Association (BGAPMEA), Bangladesh Jute Goods Exporters Association, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), Bangladesh Textile Mills Association (BTMA) and bounded and non-bounded others sector stakeholders are scheduled to discuss with NBR at the revenue authorities headquarters on Thursday. According to BGMEA budget proposal, they also recommended the revenue board to set income tax at a minimum rate of 10% from the existing 20% for the next five years starting from next fiscal year. The apparel makers have enjoyed the reduced corporate tax rate at 10% from 2005 to 2014 under special consideration. The government, however, aligned the tax rate with the regular rate of 35% from FY2014-2015. Arguing about the demand, the sector leaders said, apparel makers are trying to achieve $50 billion export by 2021, which is set by the Prime Minister Sheikh Hasina. The industry required huge invest to reach the goal. On the other hand, the apparel makers have faced challenge to achieve the export target due to price cutting by the foreign buyers, while the transport and lobour salary and others costs are hiked 219% by the last five years, it also hiked more than 17 % cost of doing business They also urged the NBR to free traders from filing up VAT returns as the export-oriented industries are enjoying exemption from paying VAT.
