The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) recently, in a letter to finance minister AHM Mustafa Kamal, demanded a reduction in source tax on readymade garment (RMG) export to 0.25 per cent from 0.5 per cent for the next five years and acceptance of the tax as final payment.
The source tax was set at 1 per cent for fiscal 2019-20, and the government reduced the tax rate to 0.25 per cent through a statutory regulatory order which expired recently.The Bangladesh Garment Manufacturers and Exporters Association and the Bangladesh Knitwear Manufacturers and Exporters Association recently, in a letter to finance minister AHM Mustafa Kamal, demanded a reduction in source tax on readymade garment export to 0.25 per cent from 0.5 per cent for the next five years and acceptance of the tax as final payment.#
Kamal on June 11 proposed tax at source at the rate of 0.5 per cent in the proposed budget for the fiscal 2020-21 that was passed in parliament a few days back.
Amid the severe cash crisis caused by the cancelation of global orders and deferred payment, the sector is trying to continue export business by communicating to buyers and governments, the letter said.
“Considering the national crisis caused by the coronavirus pandemic, we are seeking support from the government,” Bangla media reported citing the letter.
RMG factory owners had recently sent a letter to the finance ministry demanding further stimulus to pay workers using COVID-19 as a pretext.
Fibre2Fashion News Desk (DS)
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