Bangladesh Garment Manufacturers and Exporters Association (BGMEA) on Wednesday 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.
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 other machineries.
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 simplified.”
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).
