According to the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), the government should reduce the tax at source on the RMG sector from 1% to 0.5%.
The appeal was recently made by the BGMEA in a letter to the National Board of Revenue (NBR).
The association claimed that given the difficult times the apparel industry is currently experiencing on a global scale, the tax at source should be set at 0.5% and implemented for the following 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.