Budget Not Textile-Friendly

RMG manufacturers oppose proposal to raise source tax

Staff Correspondent

6th June, 2015 10:13:51 printer

RMG manufacturers oppose proposal to raise source tax

Terming the proposed budget ‘business friendly but not textile friendly’, the leaders of the apparel sector strongly opposed the proposal for raising source tax to 1 percent from the present 0.30 percent.
The leaders of the Bangladesh Garments Manufacturers and Exporters Association (BGMEA), the Bangladesh Textile Mills Association (BTMA), the Bangladesh Knitwear Manufacturers and exporters Association (BKMEA) and the Bangladesh Garments Accessories Manufacturers and Exporters Association  jointly organised the press conference at the BGMEA conference room at Karwan Bazaar on Friday.
Expressing reaction over the proposed budget placed at the parliament on Thursday, BGMEA President Md Atiqul Islam in a written handout said the RMG sector has been suffering from a number of problems including higher interest rate, price hike in Europe, shortage of power and gas, infrastructure constraint that has resulted in fall in business growth by 2 percent during last few months.
“In such a situation, if the government raises source tax to 1 percent, it will put severe negative impact on the RMG industry,” he added.
BTMA President Tapan Chowdhury, BKMEA President AKM Selim Osman, BGAMEA President Rafej Alam Chowdhury were present in the press conference.
“Such a decision would put the country’s major foreign currency earning sectors into great trouble,” Atiqul said adding, “the government should treat RMG sector like other exporting sectors while fixing source tax as this industry needs to be treated differently.”