BGMEA demands to make tax at source at previous 0.5%

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has demanded that the government makes the tax at source on the RMG sector at the previous 0.5% from the existing 1%.

The BGMEA made the appeal in a letter to the National Board of Revenue (NBR) recently.

The association said that the apparel sector is now passing through a tough time considering the current global situation for which the tax at source should be fixed at 0.5% and thus should be enforced for the next five years.

"Without such policy support, it will be hard to maintain the competitive edge of the RMG industry," said the BGMEA in the letter.

The letter, signed by BGMEA President Faruque Hassan, noted if the tax at source is made at 0.5% for the next five years, it would be possible to maintain export competitiveness.

"If the industry remains alive, there will be newer employments while export competitiveness and revenue income can also be increased through raising competitive edge without raising the tax rate," the letter added.

The tax at source on the apparel sector has been increased to 1% from the previous 0.5% in the current fiscal year.