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Exporters seek 0.25pc source tax

FE Report | June 11, 2021 00:00:00

Exporters Association of Bangladesh (EAB) demanded 0.25 per cent source tax for five years for all export sectors, especially readymade garment (RMG) industry, of the country.

Current source tax is 0.50 per cent.

Other demands of EAB included withdrawal of advance tax and tax on cash incentive on exports.

The government in the budget for fiscal year of 2021-22 has proposed 0.25 per cent business turnover tax for individual taxpayers up to Tk 30 million or above from the existing 0.50 per cent.

But EAB in a statement on Wednesday demanded that the government make the 0.25 per cent rate effective for all businesses.

Hailing the overall budget, EAB President Abdus Salam Murshedy thanked the government for continuation of an additional 1.0 per cent cash incentive for the RMG sector.

The government has proposed continuation of the existing 10 per cent and 12 per cent corporate tax rate, respectively, for green RMG factories and RMG factories for the next two years.

In this regard, Mr Murshedy demanded that the government include the leather and leather goods export sector in the same policy facility.

The advance tax on imports has been proposed to be cut from 4.0 per cent to 3.0 per cent, said Mr Murshedy, urging the government to withdraw the advance tax.

The cost of doing business will increase while the ease of doing business will be hampered if the government implements the circular related to bonded warehouse licences, he said.

The EAB requested the government to fix value added tax (VAT) on all kinds of yarns at Tk 3 and allow duty-free imports of all types of fibres.

It also demanded duty-free import of industrial thermostat de-humidifier, and zero per cent duty for importing chemicals used in effluent treatment plant of export-oriented industries.

Its other demands included duty waiver on freezer van and chiller van considering their necessity in meat exports.

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