April 28, 2018

Garment makers, the country’s main export earners, yesterday sought full waiver of source tax on export receipts for three years as a helping hand as they look to hit $50 billion in shipments by 2021.At present, the tax authority collects 0.70 percent tax on total export proceeds from major export items, including garment. The amount of source tax collection from apparel shipment would not be more than Tk 2,000-2,500 crore on export receipts of $30 billion, said Siddiqur Rahman, president of the Bangladesh Garment Manufacturers and Exporters Association. “This is not a big amount,” he said in a meeting with high officials of the National Board of Revenue ahead of formulation of tax measures for fiscal 2018-19.The government plans to frame a budget of more than Tk 400,000 crore for the next fiscal year. There would be no big impact if the source tax is not collected from garment exporters considering the sector’s contribution to direct and indirect job creation, he added. “So, please waive the tax,” he added. The plea from garment exporters comes at a time when apparel shipments are on the rise. Garment shipments rose 9 percent year-on-year to $22.83 billion in the first nine months of the fiscal year, according to data from the Export Promotion Bureau.

Source: RMG BD