In the proposed FY 2019-2020 budget, the Finance Minister has proposed a worrying 35% corporate TAX on garment accessories exports.
Expressing concern regarding the matter, Md Abdul Kader Khan, President, Bangladesh Garments Accessories and Packaging Manufacturers and Exporters Association (BGAPMEA), demanded reduction of corporate TAX to 10-12% from the proposed 35% to ensure the growth of the garment accessories sector.
Abdul Kader Khan in a press release said that despite the instruction in the national export policy to safeguard same facilities for both the direct and deemed exporters, the budget proposed 35% corporate TAX on accessories exports while the TAX was set at the rate of 12% for the readymade garment exporters. As the sector plays a vital role in the export business he said.
He has also demanded cash incentives for the sector as the RMG sector has so long been getting.
Kader pressed the finance minister to continue source TAX against exports at the rate of 0.25% for the coming financial year.