Home / Knowledge / News / Textiles / BGMEA seeks reduced export source tax from July 1

BGMEA seeks reduced export source tax from July 1

01
Nov '19
Pic: Shutterstock
Pic: Shutterstock
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) recently demanded that the source tax on export earnings at reduced rate come into effect retrospectively from July 1. BGMEA president Rubana Huq wrote to the National Board of Revenue (NBR) after the board on October 21 slashed the tax for all exporters from 1 per cent to 0.25 per cent.

In her letter, Rubana said that apparel exporters would face financial losses as the NBR’s statutory regulatory order (SRO) did not offer the benefit with retrospective effect.

Earlier, readymade garment exporters enjoyed the benefit from July 1, she said.

Rubana also claimed that the cost of business operation increased by around 30 per cent due to continued fall in prices of export items in the international market, hike in workers’ wages and other adverse situation.

The reduced tax rate will remain effective up to June 30, 2020. Income tax wing of the NBR, however, is not in favour of offering the benefit from July 1 as it would cause a huge revenue loss as exporters would be able to adjust the tax paid between July 1 and October 20 at higher rate, according to a Bangladeshi newspaper report.

In three months (July-September) of the current fiscal year 2019-20, source tax on export earnings at 1 per cent stood at Tk 517 crore from the apparel sector.

Due to the reduction in the export tax, the revenue board will get at least Tk 2,000 crore less in tax from the apparel sector, which accounts for more than 83 per cent of the country’s total export earnings.

Fibre2Fashion News Desk (DS)


Interviews View All

Smith Vaghasia, Sanado India

Smith Vaghasia
Sanado India

Online remains the best destination for shopping

Textile industry, Head honchos

Textile industry
Head honchos

South India has a very strong manufacturing base

Top executives, Association

Top executives
Association

'Support and Outreach' huge relief for MSMEs

Eric Schoeller,

Eric Schoeller

Groz-Beckert is the world's leading provider of industrial machine...

Hardik Sanghvi,

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

Aaron Spivak,

Aaron Spivak

Canada-based Hush Blankets was founded by Lior Ohayon and Aaron Spivak to...

Paolo Ocleppo, Sandvik Hyperion

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Ian Russell, Pireta

Ian Russell
Pireta

UK-based Pireta has developed a unique free-form process to add durable,...

Michael Jaenecke, Messe Frankfurt

Michael Jaenecke
Messe Frankfurt

From May 14 to 17, international exhibitors will present the entire...

Yash P. Kotak, Bombay Hemp Company

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Rupa Sood and Sharan Apparao, Nayaab

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Tony Ward, Tony Ward

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


November 2019

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

Follow us on instagram

Follow

Follow Fibre2Fashion On


Advanced Search