BGMEA wants to keep 0.5pc source tax for next 5 years

Staff Correspondent: Dhaka, Jun-13,

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has urged the government to keep the source tax on export earnings unchanged for at least for next five years to help the sector overcome difficult moment.

BGMEA president Faruque Hassan made the appeal during a post-budget press conference at a city hotel on Monday.

The government has proposed increasing the source tax on export profits to 1 per cent from the existing 0.5 per cent in the next fiscal year 2022-2023.

“If the industry sustains, revenue and new employments will be generated,” said the BGMEA chief, noting that the export volume is expected to reach US$ 41 billion in the outgoing fiscal year 2021-2022.

Hassan said overall revenue can be boosted without increasing source tax on expert earnings by raising capacity of the industry.

He also said they want to achieve export target of US$ 45 billion in the next fiscal year.

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