Apparel trade bodies seek extensive tax benefits

Apparel and textile makers seek a slew of tax benefits, including slashing source tax, in the upcoming national budget for facilitating the export sector's growth.
Their proposals include adjusting or refunding advance income tax (AIT) upon return submission, value-added tax (VAT) waiver, and reductions in overall "tax burdens".
Leaders of BGMEA, BKMEA and Bangladesh Textiles Mills Association (BTMA) came up with such wish-list at a pre-budget meeting with the National Board of Revenue at the NBR Bhaban in Dhaka's Agargaon area on Tuesday.
Chairman Abu Hena Md Rahmatul Muneem of the NBR presided over the meeting, attended by leaders from the clothing-sector associations---BGMEA, BKMEA and BTMA.
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) urged the government to reduce the tax at source on export of RMG items to 0.5 percent from the existing 1.0 per cent and thus keeping it for the next five years.
The garment association also sought the rate of income-tax deduction on cash incentives against exports to be halved from 10 per cent to 5.0 per cent with a view to enhancing the capacity of the garment industry.
It also urges the government to reduce income tax at source from 20 per cent to 10 per cent from the fee paid to export growth and development from ERQ Fund for export- oriented textile industry "in greater interest" of Bangladesh's main export trade.
Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) also demanded the tax at source on RMG exports to be fixed at 0.5 percent and keeping so for the next five years from the fiscal 2024-25 to 2028-29.
It also has proposed reduction in the rate of income tax on cash incentives against exports from 10 per cent to 3.0 per cent.
And Bangladesh Textile Mills Association (BTMA) has requested the government to exempt all types of fibres, including recycled and synthetic, from duties, taxes, and non-tariff barriers in the upcoming fiscal year of 2024-25.
Additionally, they have urged the government to consider allowing a concessionary tax at 1.0 per cent on industrial chillers as it is categorised as capital machinery in country's textile mills.

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