Bangladesh likely to keep Source Tax un­changed for ap­parel in­dus­try

Apparel Online - - India & Beyond -

Bangladesh’s Na­tional Board of Rev­enue (NBR) has hinted of keep­ing the source tax un­changed for the coun­try’s ex­port sec­tor, around 83% of which is oc­cu­pied by the ap­parel in­dus­try. NBR Chair­man Moshar­raf Hos­sain Bhuiyan in­di­cated this while speak­ing in a meet­ing with ex­por­to­ri­ented busi­ness cham­bers and Eco­nomic Re­porters’ Fo­rum at NBR Au­di­to­rium, Dhaka, ahead of the up­com­ing bud­get prepa­ra­tion for 2018-19 fis­cal.

Dur­ing the dis­cus­sion with Ex­porters’ As­so­ci­a­tion of Bangladesh (EAB), the in­sti­tu­tion’s Senior Vice Pres­i­dent Md Hatem said: “The prices of ap­parel items have gone down world­wide. Be­cause of the falling prices, now, 80% of the com­pa­nies are suf­fer­ing losses, 10% are op­er­at­ing on break-even point, and the re­main­ing 10% are prof­it­ing.” “At such a crit­i­cal point, the tax at source is prov­ing to be a real hand­ful for busi­ness. You (NBR) need to fix the tax at source for ex­port-ori­ented in­dus­tries, in­clud­ing the ap­parel in­dus­try, for the next five years. This will help the en­trepreneurs to for­mu­late busi­ness poli­cies,” he said. In re­sponse to such re­marks, NBR Chair­man Bhuiyan said that for the time be­ing, they don’t have any plans to raise the tax at source. Since this will be the Govern­ment’s pre-elec­tion bud­get, there should not be many changes. The in­flow of rev­enue from ex­ports is lower than the amount of ex­port. Some money is be­ing kept abroad. Now, NBR is think­ing that if it can im­pose source tax on master LC value. Among those present in the dis­cus­sion were Rezaul Has­san, mem­ber of NBR’s VAT pol­icy, Firoz Shah Alam, mem­ber of NBR’s Tax Pol­icy, and Kanan Ku­mar, mem­ber of NBR’s In­come Tax Pol­icy. Other senior mem­bers of ex­port-ori­ented busi­ness fo­rums were also present. Cur­rently, the tax at source for ex­ports stands at 0.70%. How­ever, the ex­port-ori­ented in­dus­tries, es­pe­cially the gar­ment man­u­fac­tur­ing, have re­peat­edly urged the Govern­ment to with­draw the levy, cit­ing it to be a ma­jor ob­sta­cle in the growth of the in­dus­try.

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