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RMG exporters resist NBR's stand on non-payment of tax
29
Oct '10
Readymade garment (RMG) exporters have expressed their opposition over the revenue board's decision to take disciplinary actions against businesses which have failed to pay taxes on rented premises. In order to reduce the cost of production for small as well as medium RMG units, the readymade garment exporters have urged the VAT authority to remove the tax imposed on rented premises. The Government of Bangladesh had imposed a 15 percent VAT on rented premises in the 2009-10 budget.

Currently, the National Board of Revenue has taken a stand to guarantee that tax is properly collected from the RMG units which go against the rules. A number of notices have been issued by the VAT authority and action has been taken against those RMG units which have not paid the taxes.

The production cost of the export-driven RMG units is expected to rise once the 15 percent VAT is added to the cost. In such a scenario, the RMG exporters will not be in a position to compete in the global market. Most of the small as well as medium RMG units operate in rented premises. The tax would severely influence these RMG units.

The National Board of Revenue has been requested not to go for any legal action against the RMG units for not paying the taxes till an order on the exemption of the fees is issued. Previously, the Finance Minister of the country also gave an assurance to the RMG exporters to consider the dispensation of the 15 percent VAT on rented premises.

The Minister also requested the revenue board to assess the budgetary measure to be taken for the RMG exporters. The revenue board officials said that the dispensation of the VAT on rented premises is still under its perusal but since the measure has not been withdrawn therefore the field offices of VAT are forced to impose the measure.


Fibre2fashion News Desk-India

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