CMCCI rues lifting of spl tax rate for apparel exporters

CHITTAGONG, Sept 3: Chittagong Metropolitan Chamber of Commerce and Industry (CMCCI) President Khalilur Rahman has said that survival of the readymade garment (RMG) sector is now at risk as the government has withdrawn its special tax rate.
 In a letter to the Prime Minister on Wednesday he said that they acknowledged her support that the tax at source was re-fixed at 0.30 per cent instead of 0.80 per cent.
But the National Board of Revenue (NBR) withdrew the special tax rate of 10 per cent for apparel exporters at the time of annual tax assessment through an SRO (statutory regulatory order) with effect from July 1 last.
But the facility was aiding speedy growth and survival of the RMG sector that creates the highest number of jobs and fetches the major foreign exchange earnings.
Recently the NBR observed that after expiry of the SRO the special tax rate would be around 30-35 per cent with effect from the current fiscal (2014-15) for RMG exporters instead of 10 per cent. It might undermine the largest employment sector and lead to a slump in the major export earning sector.
"Global recession in the past followed by incidents and the internal situation including addressing compliance issues as sought by foreign buyers is not unknown to you. RMG exporters are taking all risks, liability and responsibility at home and abroad including increased wages and too high bank interest rate," he said in the letter.
So, "as a matter of policy support, the SRO deserves further extension. Any additional financial burden will simply victimise our apparel sector," the letter read.