Garment sector’s apex trade body, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has urged the government not to raise tax at source for apparel exports, claiming it will make things “very difficult”.
BGMEA also lauded the government for extending different facilities in the budget for the fiscal year 2022-23, but criticised the increase in tax at source.
Finance Minister AHM Mustafa Kamal on Thursday proposed to raise tax at source for garment exports from 0.5 percent to 1 percent in the budget for the next fiscal year.
SM Mannan Kochi, BGMEA’s acting president, in his reaction on Friday said, “Under the present circumstances, [I ask] the prime minister [Sheikh Hasina] and the finance minister to consider keeping the tax at source unchanged for the garment industry.”
“We earnestly request the government to retain the 0.5 percent tax at source against exports for the next five years to ensure the industry stays out of danger in these times of crisis.”
BGMEA hopes to crop up export earnings of $41 billion in the 2021-22 financial year, improving from last year’s $31.45 billion.
“If we can increase exports at this rate, it will boost revenues without raising tax rates. This will benefit the economy on the whole,” BGMEA said.
The association, however, praised the government’s move to cut tariffs and tax in different areas that benefit the garment sector.