Leaders of the country's accessories and packaging industry have requested the government to reduce corporate tax and source tax rates.
This will help the sector thrive and compete in the global market, they observed.
"We've repeatedly made a plea to fix corporate tax at a tolerable rate," said Md Abdul Kader Khan, president of Bangladesh Garment Accessories and Packaging Manufacturers and Exporters Association (BGAPMEA).
"But there is no reflection of our demands in the proposed budget," he deplored the fact.
The cost of production has gone up by 17 per cent due to a hike in the prices of raw materials, Mr Khan said.
On the other hand, the prices of locally made accessories are falling.
As a result, it is becoming difficult to be competitive in the global market, the BGAPMEA leader explained.
He was speaking at a post-budget press conference at a city hotel on Sunday.
"The government has proposed a 15 per cent corporate tax rate for RMG sector, but 35 per cent rate for backward linkage industry still stands," he said.
Mr Khan demanded same facilities provided to other export-oriented sectors.
"We request the government to reduce corporate tax rate to 15 per cent to attract investment and help the sector flourish," he added.
"We pay tax at source at a rate of 0.7 per cent and nothing has been mentioned in the proposed budget to this end," the BGAPMEA leader said.
He demanded a reduction in the rate of tax at source to 0.5 per cent in the next fiscal year.
Terming the proposed budget 'timely' for the country's socio-economic development, he stressed the need for proper implementation of the fiscal measures.
Rafez Alam Chowdhury, who formerly led the association, said 1,650 member- factories will find it hard to survive without the government's policy support.
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