Bangladesh Garment Manufacturers and Exporters Association (BGMEA) had recently tabled a proposal to seek a reduction in tax at source for the country’s garment exporters. Bangladesh’s National Board of Revenue (NBR) is reviewing the same to bring the tax at source to 0.25 percent.
The tax benefit has been urged to stay viable as the cost of doing business is increasing while prices of garments are declining in the globally, reportedly said Mohammad Siddiqur Rahman, President of BGMEA.
Notably, tax at source for all export-oriented sectors, including garments, was slashed to 0.6 percent from 1 percent in September this year.
In 2017, tax at source rate for all export-oriented businesses was 0.70 percent due to which a loss of BDT 15 billion was reported by NBR.
Also, corporate tax rates were reduced to 12 per cent for garment exporters and 10 percent for green factories. Export-oriented industries are supposed to pay 35 percent corporate tax.