BGMEA proposes 0.5pc source tax for next 5yrs

BGMEA proposes 0.5pc source tax for next 5yrs .The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has demanded that the government make the tax at source on the RMG sector at the 0.5 percent from the existing 1.0 per cent.

“If the government makes the tax at source at 0.5 percent, then, entrepreneurs can confidently undertake mid-term business and investment plans,” said BGMEA President Faruque Hassan through his written speech at a press conference at BGMEA Bhaban in the city.

BGMEA proposes 0.5pc source tax for next 5yrs

Faruque Hassan said that during the assessment of the garment industry, other income, such as sub-contract income, profit on disposal of assets and miscellaneous expenses, should be treated as admissible and instead of being taxed at the normal rate (existing 30 percent), corporate tax rate of 12 per cent should be imposed.

It will be easy to survive in business, he added.Apart from this, he requested the government to reduce the rate of income tax deduction at source from 20 percent to 10 percent from the fee paid for the growth and development of exports from the Exporter Return Quota Fund.

The BGMEA chief said that they had a demand to withdraw 10 per cent tax on cash assistance in export of ready-made garments. “They still thought that it was logical to keep the cash incentives out of the tax net as it was not an income through business,” he added.

He also demanded 10 per cent special incentive on non-cotton garments export in an effort to encourage more export through investment in non-cotton sector.