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Bangladesh's NBR weighs further tax cut for RMG exporters
30 Nov '18
1 min read
Bangladesh’s National Board of Revenue (NBR) is now reviewing a proposal to reduce the tax at source for readymade garments (RMG) exporters to 0.25 per cent a month after apparel makers received a cut in tax at source. NBR’s income tax wing had reduced tax at source for all export-oriented sectors to 0.6 per cent from 1 per cent in September.
Last year, tax at source rate for all export-oriented sectors was 0.70 per cent. NBR officials estimated a Taka 15-billion loss in income tax collection this year because of the reduction.
A situation paper has already been prepared for the government high-ups' consideration, they said.
The tax benefit has been demanded to stay competitive as the cost of doing business is increasing while prices of garments are declining in the global market, according to Mohammad Siddiqur Rahman, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).
Also, corporate tax rates were reduced to 12 per cent for garment exporters and 10 per cent for green factories. Export-oriented industries are supposed to pay 35 per cent corporate tax. (DS)
Last year, tax at source rate for all export-oriented sectors was 0.70 per cent. NBR officials estimated a Taka 15-billion loss in income tax collection this year because of the reduction.
A situation paper has already been prepared for the government high-ups' consideration, they said.
The tax benefit has been demanded to stay competitive as the cost of doing business is increasing while prices of garments are declining in the global market, according to Mohammad Siddiqur Rahman, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).
Also, corporate tax rates were reduced to 12 per cent for garment exporters and 10 per cent for green factories. Export-oriented industries are supposed to pay 35 per cent corporate tax. (DS)
Fibre2Fashion News Desk – India
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