Exporters’ lobby hails tax cuts

Hailing the cut in source tax on all exports, Exporters Association of Bangladesh (EAB) Tuesday said an equal rate for all will help them enhance their competency.

The finance minister in his budget speech on June 04 proposed 1.0 per cent tax at source on all exports, including ready-made garment, but it has now been reduced to 0.6 per cent.

The apparel exporters paid tax at source on their export proceeds at a rate of 0.3 per cent in the outgoing fiscal year (FY) 2014-15 while other export-oriented sectors at a rate of 0.60 per cent.

The EAB in a statement issued on the day also demanded extension of the timeframe for existing 10 per cent income tax up to June 2019 and special export incentives for European market to overcome the impact of devaluation of euro against US dollar.

"We request the government to consider our demands, otherwise exporters will lose their competitiveness," said Abdus Salam Murshedy, president of EAB.

Buyers will encourage to source from other countries where they can buy products at a competitive rate, he said, adding that it might result in shutdown of factories and unemployment of thousands of workers.

As a result, both local and foreign investors would be discouraged to make further investments and overall export growth would decline again, he noted.  

    munni_fe@yahoo.com