Bangladesh Garment Manufacturers and
Exporters Association (BGMEA) today demanded to the government to reduce the
tax at source on RMG exports at 0.25 percent from the existing 0.50 percent
and thus keep this rate unchanged for the next five years.
The leaders of BGMEA, led by its president Dr Rubana Huq, placed this
demand before the National Board of Revenue (NBR) at a pre-budget meeting for
the next fiscal year (FY22) held at the conference room of the NBR building
in the city’s Segunbagicha area today.
Alongside the BGMEA, the leaders of Bangladesh Knitwear Manufacturers and
Exporters Association (BKMEA) and Bangladesh Textiles Mills Association
(BTMA) also placed their budget proposals.
The BGMEA placed a 16-point recommendation including to cancelling the
provision for exempting VAT on locally produced products and services and
submitting VAT returns, withdrawing tax on cash support, keeping intact the
corporate tax rate for this sector for the next five years, removing the
complexities arising from HS code, withdrawing duty on import of machineries
for industries, simplifying the unloading process of capital machineries and
Besides, the BGMEA also proposed for simplifying the conditions for
importing firefighting equipments for more than one time to expand factories.
While taking part in the budget discussion, Dr Rubana Huq and BKMEA Senior
Vice-President Mohammad Hatem highlighted various issues related to customs
and value added tax (VAT).
The leaders of BGMEA and BKMEA informed that the regular exporters are not
involved with the misappropriation of the bond facilities, rather a vested
quarter is involved in it.
They also assured the revenue board of extending their cooperation for
detecting those who are involved in such forgery.
Dr Rubana said, “If the regular exporters are labeled as thief, then it
hurt. This evil practice (misappropriation of bond facilities) should have to
be stopped. A vested quarter is involved in it and that should be nabbed.”
Mohammad Hatem urged the NBR to take necessary measures so that this
vested quarter could not do business in Bangladesh.
Stressing the need for ensuring full automation to address the situation,
NBR Chairman Abu Hena Md Rahmatul Muneem said, “The NBR has advanced a lot in
this regard. If the NBR goes into full automation, then the incidents of
harassments will decline sharply while the revenue collection process will be
BTMA President Mohammad Ali Khokon demanded to the government to impose
VAT at a same rate on all types of yarn, fixing the tariff value on import of
fabric in line with the international market and using the weighing in terms
of meter instead of kilogram (KG).
Source: Bangladesh Sangbad Sangstha (BSS)