DHAKA : Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Friday expressed mix reaction on proposed budget for fiscal 2012-13.
The BGMEA authority said although the budget is industry friendly, it would have a negative impact on export of readymade garment products.
BGMEA president Shafiul Islam came up with the reaction at the conference hall at about 11:30am.
He said the interest rate in this regard has been increased to 1.20 percent from 0.60 percent, which could have negative effects on RMG products export.
Shafiul Isalm said, “Cent percent increase of direct tax is completely conflicting with the RMG industry policy. The normal progress of the textile industry will be hampered if Cent percent increase of direct tax imposed.”
He said people think that export-oriented industry earns 12 percent profit. As per budget, industry will have to pay 10 percent tax and 1.20 percent tax at source. But, garments industries and factories make 0.50 to 1 percent profit on its export price.
After passing the budget with the increased tax at source, owner will have to pay tax from own property, he added.
The BGMEA boss urged the government to realize the condition of all exporters sans keeping some successful men as example.
BDST: 1421 HRS, JUN 08, 2012
Edited by:Rubaiat Saky, Newsroom Editor
Maria Salam, Asst Output Editor
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