By admin       2019-04-03

Non-garment export-oriented industries on Monday demanded tax benefits, including corporate income tax at reduced rate, similar to readymade garment sector.At a pre-budget discussion with National Board of Revenue, representatives from different export-oriented sectors said that NBR should not discriminate among the sectors in giving tax facilities.Bangladesh Garment Manufacturers and Exporters Association president Md Siddiqur Rahman, who was also present at the meeting, echoed with the demand of the non-RMG sector.NBR should provide similar tax benefits to all exporters and the benefits should be given for long term, he said.Bangladesh Textile Mills Association president Mohammad Ali Khokon said that corporate tax rate for textile sector should be lowered to the level of apparel sector.Currently, textile sector enjoys corporate tax at reduced rate of 15 per cent and tenure of the facility is set to expire June, 2019.Khokon demanded extension of the benefit up to 2029. Bangladesh Plastic Goods Manufacturers and Exporters Association president Md Jashim Uddin said that NBR should provide tax benefits to small and potential exporters similar to apparel sector to help the sectors growth.Bangladesh Jute Mills Association demanded reduction of source tax on export proceeds to 0.25 per cent for jute exporters from current 0.60 per cent.Bangladesh Garment Accessories and Packaging Manufactures and Exporters Association president Abdul Kader Khan demanded for setting the 0.25 per cent source tax on export proceeds for five years. For apparel exporters, BGMEA president Siddiq demanded reduction of corporate income tax rate to 10 per cent from existing 12 per cent.NBR should take steps to lower the interest rate on bank loans, Siddiq said, adding that nothing could be achieved without lowering interest rate and realising bad loans.BGMEA, in its written proposal, demanded that NBR withdraw the existing 0.25 per cent source tax on export earnings, or alternatively, consider the source tax as final settlement.It also demanded complete value-added tax exemption for export-oriented sectors and waived them from submission of VAT returns. The association also sought removal of a provision of Income Tax Ordinance-1984 which says that employers should provide information related to tax compliance of their employees.Responding to the demands, NBR chairman Md Mosharraf Hossain Bhuiyan said that they would srcutinise the proposals during the budget preparation.He, however, urged the businesses to play a role in prevention of leakage of goods imported duty-free under bonded warehouse licences.No one will be spare for misuse of bond licences, he said, adding that in future only exporters would be provided bond licences.He also requested employers to provide actual information related to number of foreign employees and their salary so that NBR could collect proper amount of income tax from them. Bangladesh is the fifth largest source of remittance earnings of India, but NBR dont get so much tax from foreigners, he said.NBR member (income tax) Kanon Kumar Roy, Bangladesh Terri Towel Manufacturers and Exporters association president Shahadat Hossain, among others, spoke at the programme.

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