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EAB proposes continuation of 0.5% source tax in forthcoming budget

Exporters Association of Bangladesh (EAB) recently urges the government to carry on the 0.50% source tax for exporters for the next 5 years to keep them viable in the international market.

Abdus Salam Murshedy

The EAB also urged the govt. for pegging ‘no income tax on cash incentive against export earnings from all export-oriented industries, including garments, knitwear, leather, footwear, cycle, fisheries, and frozen food.

Abdus Salam Murshedy, President, EAB signed a statement with the proposals ahead of the national budget for the fiscal year 2022-23.

EAB said it believes the next 2022-23 national budget would also be a business-welcoming one with the extension of diverse recovery measures taken to cushion the covid-19 fallout in the country.

In recent periods, Bangladesh’s export-import expenses have gone 30% greater, on average, due to the deflation of Bangladeshi taka against US dollar as well as the war between Russia and Ukraine, it said.

“All the export-oriented industries, including the RMG, are presently in a tough situation owing to various domestic and international pressures,” it added.

In its budget proposals, the EAB also insisted the government to allow duty-free import of Industrial Thermostat De-humidifier device for the export-oriented industries.

It also proposed that the government allow the export-oriented industries to import fire safety equipment at an exempted rate for several times depending on their necessity. At present, they are allowed to do so for one time only.

The EAB also advised further 5-year extension of 10% corporate tax rate for the green factories, as well as 12% for all export-oriented industries, especially textile, knitwear and territorial, leather and footwear, bicycle, fisheries, and frozen food.

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