Bangladesh exporters, in a recent letter to finance minister finance minister, reiterated their call for keeping the advance source tax on export proceeds unchanged at 0.50 per cent for the next five years instead of raising it to 1 per cent as proposed in the national budget for fiscal 2022-23. Garment sector entrepreneurs are reportedly planning to meet the prime minister next week to discuss the issue.
An increase in the tax rate, especially at a time when the cost of production has surged, might make a dent in their working capital, reducing the sector's competitiveness in the global market, said the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) and the Exporters Association of Bangladesh (EAB) in the letter.
Read more about Bangladeshi exporters urge govt to withdraw source tax hike decision
Explore more Apparel News