Welcoming the new national budget proposed for 2018-19, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) on Saturday urged the government to withdraw source tax for three fiscal years and bring down corporate tax to 10 percent.
In a post-budget press briefing at the BGMEA building in the city, its President Siddiqur Rahman also said the proposed budget is very business friendly.
"Corporate tax in the banking sector has seen reduction of 2.5% where in the Readymade Garments (RMG) sector it has been increased from 12 percent to 15 percent, and from 10 percent to 12 percent for green industries," said the BGMEA president urging the government to reduce it to 10 percent.
"We’re hopeful that the corporate tax can be cut down through proper discussion with the Finance Minister and the National Board of Revenue (NBR)," he added.
Siddiqur Rahman proposed the government to withdraw the 1 percent source tax considering the critical situation of the sector.
He also said Value Added Tax (VAT) in export sector is a major challenge for them.
As the proposed budget does not give any direction in this regard, the BGMEA urged to keep the export sector 100 percent vat free.
As Finance Minister AMA Muhith did not mention anything about stamp duty on RMG sector, the BGMEA president also said that 0.2 percent stamp duty in the sector is not acceptable at all.
"Many exporters get their payments three to four months later, especially in deferred payment, and this stamp duty is a big hurdle on them," he added.
Urging the government not to see the RMG sector as a sector of tax but to consider it as a sector of employment, the BGMEA president said they can discuss the issues with the authorities to fulfill their demands.