Businessmen in the country’s apparel sector are not happy with the proposed tax at source in the national budget for 2015-16 fiscal.
At a press conference at the office of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) at Karwan Bazar in the city on Friday, they feared increasing tax at source would hinder the natural growth of the country’s readymade sector.
They also alleged that the proposed budget has not been garment-sector-friendly and demanded withdrawal of the proposed tax at source.
In his budget proposal on Thursday, finance minister AMA Muhith proposed an increase of tax at source from 0.3 to 1 per cent in the sector.
BGMEA president Atiqul Islam read out a written statement at the press conference organised jointly by the BGMEA, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), Bangladesh Textiles Mills Association (BTMA), and Bangladesh Garments Accessories & Packaging Manufacturers & Exporters Association (BGAPMEA).
Justifying their demands for withdrawal of the increased tax at source, Atiqul Islam said the readymade garment sector is passing through a transformation as various reforms are being brought in the sector following fire at Tazreen Fashions and the Rana Plaza collapse for which entrepreneurs “are investing crores of taka”.
On the other hand, he added, the taka has devaluated against euro in the last one year.
“One per cent tax at source will put the knit and woven sectors at risk anew,” he added.
The function was attended by BKMEA president AKM Selim Osman and BTMA president Tapan Chowdhury, among other leaders of the country’s apparel industry.
Courtesy: Prothom Alo