Exporters Association of Bangladesh (EAB) has urged the government to increase the proposed 1.0 per cent cash incentive to 3.0 per cent for the country's readymade garment (RMG) sector.
It also requested the government to withdraw the proposed 5.0 per cent advanced income tax, which is refundable or adjustable, on capital machinery import, according to a statement issued on Tuesday.
"The proposed 1.0 per cent cash incentive for RMG sector is insufficient taking the sector's current situation. We urge the government to increase it to at least 3.0 per cent," EAB president Abdus Salam Murshedy said in the statement.
Lauding many of the proposals like 2.0 per cent incentive on remittance, tax holiday for industries in the economic zones and hi-tech parks, funds for the start ups, creating new entrepreneurs and research and developments, he said that these measures will have positive impacts on the economy.
Measure has been taken to implement the new multiple VAT (Value Added Tax) from the upcoming fiscal, he said, requesting the government for proper use and implementation of the law.
The EAB's other demands included withdrawal of import duty on all types of fire safety equipments, increasing allocation in health and service sector, and keeping the export-oriented sectors fully out of the VAT purview.
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