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Bangla garment and textile bodies seek tax incentives
20 Jun '16
2 min read
Expressing concern over some budget proposals like increasing the source tax from 0.6 to 1.5 per cent, the associations of garment and textile industries in Bangladesh have urged the government to provide business-friendly policy support such as cut in source and corporate taxes in the budget for 2016-2017 financial year.
The 150 per cent hike in the source tax will put extra pressure on the garment and textile industries which are already facing a number of challenges, like fall in apparel prices, increase in production cost by 8-10 per cent, huge cost of factory remediation, depreciation of currencies by competing countries, they said in a joint statement.
Warning that the higher taxes would diminish their competitive edge in the international market, the associations urged the government to retain source tax at 0.6 per cent and corporate tax at 10 per cent for garment and textile industries. They also appealed to the government to reconsider their budget proposal in this regard and help the highest export earning sector sustain its export advantage and maintain growth.
The signatories to the joint statement include Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Bangladesh Knitwear Manufacturers Exporters Association (BKMEA), Bangladesh Textile Mills Association (BTMA), Bangladesh Terry Towel and Linen Manufacturers and Exporters Association (BTTLMEA) and Bangladesh Garments Accessories & Packaging Manufacturers & Exporters Association (BGAPMEA). (SH)
The 150 per cent hike in the source tax will put extra pressure on the garment and textile industries which are already facing a number of challenges, like fall in apparel prices, increase in production cost by 8-10 per cent, huge cost of factory remediation, depreciation of currencies by competing countries, they said in a joint statement.
Warning that the higher taxes would diminish their competitive edge in the international market, the associations urged the government to retain source tax at 0.6 per cent and corporate tax at 10 per cent for garment and textile industries. They also appealed to the government to reconsider their budget proposal in this regard and help the highest export earning sector sustain its export advantage and maintain growth.
The signatories to the joint statement include Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Bangladesh Knitwear Manufacturers Exporters Association (BKMEA), Bangladesh Textile Mills Association (BTMA), Bangladesh Terry Towel and Linen Manufacturers and Exporters Association (BTTLMEA) and Bangladesh Garments Accessories & Packaging Manufacturers & Exporters Association (BGAPMEA). (SH)
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