The Bangladesh Garment Accessories and Packaging Manufacturers and Exporters Association (BGAPMEA) has proposed the government to reduce corporate tax for fiscal 2018-19 to 12 per cent from the present 35 per cent to boost exports and attract new investments. The association’s proposals were placed recently before the National Board of Revenue (NBR) in a pre-budget meeting.
The association also urged the government to bring down tax at source to 0.50 per cent instead of 0.70 per cent.
The knitwear and woven products exporters pay 12 per cent corporate tax and garment owners manufacturing products at certified green factories pay 10 per cent. Hence, the association feels discriminatory treatment is being meted out to their units, according to Bangladesh media reports.
Export of garment accessories and packaging products are defined as deemed export. Though the export policy does not differentiate between deemed export and direct export earners, BAPMEA said the policy is not being followed and, as a result, they are being deprived of the due government support.
The garment accessories and packaging sector earned $6.7 billion in the last fiscal, according to BGAPMEA data. Currently, Bangladesh meets about 90 per cent demand for garment accessories and packaging goods of its readymade garments sector.