Industry

Pre- budget discussion: BGMEA seeks existing tax facility for 5 more years

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has proposed retaining the existing source tax and corporate tax facility in the export- oriented garment industry for another 5 years.

The garment manufacturers have also sought 10 percent income tax exemption on cash assistance to increase the capacity of entrepreneurs.

BGMEA president Faruque Hassan put the proposal to the National Board of Revenue (NBR) in the pre-budget discussion for the fiscal year 2022-23 held at the conference hall of NBR building in Segunbagicha on Thursday.

NBR Chairman Abu Hena Md. Rahmatul Muneem presided over the discussion. Besides, NBR Member (Customs Policy) Masud Sadiq, Member (VAT Policy) Zakia Sultana and Member (Income Tax Policy) Sams Uddin Ahmed also spoke on the occasion.

Faruque Hassan said, “We have tackled the challenges of Covid-19 better than many other countries and now we are reaping its positive results. Our exports have increased and exports rose to USD $ 5 billion a month.”

“There is an opportunity to continue such an upward trend in exports. In such a situation, I am requesting to maintain the existing 0.50 per cent source tax, 12 percent corporate tax for general factories and 10 percent for green factories for another five years.” BGMEA president said.

In response, the NBR chairman said the government has a good empathy for the garment industry.

“I think your quantity of orders has increased recently with the opportunity that the government provided to the garment industries to meet the challenges of Covid-19 pandemic. The NBR is examining the matter,” he added.

The NBR Chairman said efforts will be made to facilitate the import of yarn or cotton in the country for the expansion of the garment industry.

Source: United News of Bangladesh