The Exporters Association of Bangladesh (EAB) has urged the government to continue 0.5% tax deducted at sources, widely known as source tax, on exports for at least five years in a bid to keep up Bangladesh's export competitiveness amid the ongoing crises – soaring production costs, falling rates of taka against dollar and surging freight charges.
The exporters also demanded to consider the source tax as the final settlement for the earnings so that they need not recalculate it in their income tax files, said a press release.
EAB President Abdus Salam Murshedy recently submitted the proposals to the National Board of Revenue (NBR) seeking its attention in formulating the national budget for the upcoming fiscal year of 2022-23.
The association also demanded a continuation of 12% corporate tax for export-oriented industries and 10% for green factories, and withdrawal of tax on cash incentives against exports.
Among others, it proposed to ensure a rebate facility for capital machinery import, withdraw value-added tax on products and services purchased for producing export items, and lift import duties on chemicals used in effluent treatment plants.
The EAB also proposed the revenue board provide a 20-year tax holiday to the meat processing industry for its promising boom.