Exporters want cut in tax at source on export bill

The country's exporters from different sectors have sought a cut in tax at source on export bill and withdrawal of tax on cash incentives in the budget for fiscal year 2015-16.
They said tax at source on export earnings should be waived or cut down to make it uniform for all exporters like apparel exporters.
The exporters proposed to the National Board of Revenue (NBR) to cut tax at source on export to 0.30 per cent from existing 0.60 per cent.
Currently, apparel exporters are enjoying 0.30 per cent tax rates on export bill while others are paying 0.60 per cent.
Leaders of frozen foods exporters, textile mills, jute, and plastic sectors made the proposals at a pre-budget meeting at the NBR Wednesday.
Bangladesh Textile Mills Association (BTMA) leaders urged the NBR to continue special income tax rate at 15 per cent for primary textile sectors including spinning, weaving, dying, printing and finishing mills.
The reduced tax rate is scheduled to expire in June, 2015.
The BTMA also sought tax holiday facility for new investment in spinning, weaving and other factories under primary textile sector to encourage investment in the sector.
BTMA president Tapan Chowdhury sought policy support in the budget to recover from losses in businesses due to ongoing political impasse.
He proposed waiver of 3.0 per cent tax at source on local letters of credit for supply of raw materials.
Bangladesh Jute Mills Association (BJMA) leaders proposed to the NBR to withdraw the provision of imposition of minimum tax on company and allow the sector to enjoy 15 per cent income tax.
Bangladesh Frozen Food Exporters Association (BFFEA) president Amzad Hossain urged the tax authority to withdraw tax at source on export of shrimp, fish and other frozen foods.
Tax at source on cash incentives should also be waived in the upcoming budget as it is not a profit of the exporters, he said.
Strikes and blockades hindered transportation of raw materials to fish processing factories affecting export, he said.
Plastic goods manufacturers and exporters association vice president Shahedul Islam said the government receives an insignificant amount of taxes from tax at source on export bill which can be waived.
Jute Goods Exporters Association leader S Ahmed Majumder said the jute goods exporters are small and medium businesses which are facing difficulties to pay higher licence fees and 15 per cent VAT on it.
Number of jute goods exporters declined to 323 from 500 due to financial crunch, he said.
Terry towel and linen manufactures and exporters association director Shahadat Hossain said the sector is facing uneven competition in the export market.
The sector attained an average growth of 32 per cent in the last decade which saw a decline in its export earnings. Some 48 industries out of 105 have faced closure so far.
Addressing the situation, the association leaders proposed to waive tax on cash incentives, local L/Cs and set a reduced income tax rate of 10 per for the sector.
The Vegetable Exporters Association sought an increase of cash incentives to 30 per cent on export of vegetables, betel leaf etc.
Jute Mills Association secretary A Borik Khan proposed to withdraw tax at source for export of jute products and cash incentives.
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