Bangladesh Garment Manufacturers and Exporters Association (BGMEA) urged the government to reduce corporate tax at 10 percent from the proposed 15 percent.
BGMEA also requested to review the source tax and VAT in the national budget 2018 for the apparel industry. They expressed their demands of corporate tax cut at a press conference on the proposed budget of the financial year 2018-19 held at BGMEA headquarters, in Dhaka on June 9.
BGMEA President Md. Siddiqur Rahman said, “According to the national budget 18 tabled by finance minister AMA Muhith on June 7, corporate tax for RMG units will be hiked to 15 percent.”
The corporate tax for the non-listed garment companies is increasing to 15 percent from the existing 12 percent. Listed companies will have to pay 12.5 percent, a 0.5 percent increase.
Though government always said that they are helping to promote green factory, however, according to the proposed national budget 18, green factory owners will have to pay 12 percent, compared to 10 percent now.
Siddiqur Rahman said at a press conference that the proposed hike in the corporate tax rate in RMG sector is ‘unacceptable’.
“As the finance minister did not mention anything about source tax, the RMG sector will have to pay it at the previous rate of 1.0 percent from the next fiscal year (FY),” the BGMEA President said.
“The export sector is free from the VAT, but we have to submit VAT returns to the government to get the rebate facility,” he added.
He also demanded that the government should rid them of submitting Value Added Tax returns to the VAT offices.
Finally, terming the proposed national budget 18 as ‘business-friendly’, the BGMEA president said it would help generate employment in the country.