BPGMEA for reviewing source tax hike

The country's plastic goods producers urged the government on Monday to review the proposed hike in source tax on export proceeds for the next fiscal year (FY), 2015-16.
The Bangladesh Plastic Goods Manufac-turers and Exporters Association (BPGMEA) leaders made the demand at a press conference at their office in the city.
Mentioning that the finance minister in his budget speech proposed to raise tax at source to 1.0 per cent from the existing 0.30 per cent, they said if the decision remains unchanged, the exporters may lose competitiveness in international market.
BPGMEA president Jasim Uddin said currently the sector is facing some obstacles. In this situation 1.0 per cent tax will not be appropriate for the industry players.
He said if the authorities concerned are unable to take proper decision timely, it will be difficult to earn US$ 70 billion within 2021.
He also mentioned that following declining euro rate, purchasing power has dropped in Europe. Besides, exporters are not getting Generalized System of Preferences (GSP) facility in the US market.
The plastic manufacturers sought VAT exemption on products like plastic-made hanger, tissue holder, ice-tray and ice-scoop.
They urged the authorities concerned for bringing the sector under tax holiday facility for the next 10 years, and also give 20 per cent cash incentive to increase shipment.
The BPGMEA leaders also said private sector may face obstacles to get bank loan, following increasing bank borrowing by the government in the next FY.
However, the plastic goods makers hailed the government's decision of reducing corporate tax, which will be helpful in lowering bank inertest.
They also welcomed the proposed budget, as it recommended tax benefit at 5.0 per cent on seven retail machineries of doll.
Currently, around 5,000 plastic goods manufacturing companies are operating in the country.
Among others, BPGMEA former presidents - Shamim Ahmed and Ferdous Wahid - were present at the press meet.
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