Leaders of the country’s apparel apex body — BGMEA — reiterated Tuesday its demand for reintroduction of 10 per cent special corporate tax rate and reduction of tax at source to 0.30 per cent in the next fiscal year. The demands came at a meeting between the National Board of Revenue (NBR) and the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) at the latter’s headquarters in the city. NBR chairman Nojibur Rahman and BGMEA president Md Siddiqur Rahman, among others, spoke during the meeting. The meeting, first of its kind, was initiated by the NBR as part of its ‘partnership dialogue’ with the apparel sector leaders to be held in each quarter. The factory owners are investing a huge amount of money in carrying out remediation works and retrofitting according to the prescription of Accord, Alliance and National Action Plan to ensure workplace safety, Mr Rahman said after the meeting. “More white money is required for carrying out the remediation works in the sector that can create employment for unskilled people,” he said demanding re-introduction of special tax rate and reduction of tax at source. “We need the government’s support in this regard to achieve the $50 billion export earnings target by 2021,” he said adding such budgetary supports will also help attract investment. Terming the existing source at tax as ‘burden’ especially for small and medium-sized units, he said entrepreneurs are to invest Tk 50 million to Tk 200 million in fire, electrical and structural integrity. “We also want to give tax but it should not be a burden for us,” he said. Though the sector is out of the VAT purview, businessmen have to submit a huge number of papers and face hassle to get back the VAT, he explained demanding withdrawal of the system. Quoting the chairman, the BGMEA president said the NBR assured them of raising the issues to concerned authority. The NBR chairman recommended the BGMEA leaders for full automation in providing utilisation declaration (UD) and raise awareness among its members to be tax compliant.
