BKMEA against increase of tax at source
Tuesday, 15 June 2010
FE Report
Knitwear manufacturers Monday criticised the proposed budget for the next fiscal year as it has imposed four times more tax at source on the exporters.
"This type of measure would be catastrophic for the sectors especially for the apparel sector," Fazlul Hoque, president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) said.
He was speaking at a post-budget press conference in the city at his office.
"If 1.0 per cent tax at source is imposed, the production cost will rise which will ultimately impact on exports," he said.
The exporters will face severe problems in getting order as they have to adjust the production cost with this 1.0 per cent income tax.
Finance Minister AMA Muhith has proposed to raise the tax at source for exporters to 1.0 per cent from the existing 0.25 per cent.
The business leaders sought review of the issue by the Prime Minister and finance minister.
"This proposal must be withdrawn to save the garment industry that has just recovered from the global financial crisis," the BKMEA president said.
BKMEA hailed the proposed budget for giving priority to the energy sector as the government has declared much allocation for the improvement of the sector.
"But there is no immediate measures in the budget for the improvement of power and energy crisis," Mr Hoque said.
He demanded duty free diesel for exporters until the power and energy situation improves.
The BKMEA president stressed on an 'aggressive' strategy for the apparel industry.
Knitwear manufacturers Monday criticised the proposed budget for the next fiscal year as it has imposed four times more tax at source on the exporters.
"This type of measure would be catastrophic for the sectors especially for the apparel sector," Fazlul Hoque, president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) said.
He was speaking at a post-budget press conference in the city at his office.
"If 1.0 per cent tax at source is imposed, the production cost will rise which will ultimately impact on exports," he said.
The exporters will face severe problems in getting order as they have to adjust the production cost with this 1.0 per cent income tax.
Finance Minister AMA Muhith has proposed to raise the tax at source for exporters to 1.0 per cent from the existing 0.25 per cent.
The business leaders sought review of the issue by the Prime Minister and finance minister.
"This proposal must be withdrawn to save the garment industry that has just recovered from the global financial crisis," the BKMEA president said.
BKMEA hailed the proposed budget for giving priority to the energy sector as the government has declared much allocation for the improvement of the sector.
"But there is no immediate measures in the budget for the improvement of power and energy crisis," Mr Hoque said.
He demanded duty free diesel for exporters until the power and energy situation improves.
The BKMEA president stressed on an 'aggressive' strategy for the apparel industry.