Govt to reduce tax on export

DHAKA: The government has taken decision to reduce tax-at-source on exports on basis of exporters demand.

As per the new decision, the tax-at-source will be reduced to .9 percent from proposed 1.2 percent, says National Revenue Board (NRB) source.

It said, “The rate will be effective after passing the supplementary budget. Meanwhile, finance ministry has already given necessary directives to NRB in this regard.”

Earlier, the finance minister has proposed raising the tax at source to 1.2 percent from the 0.6 percent currently enjoyed by the garments sector and 0.7 percent by the other sectors.

But, a number of exporters’ organizations, including FBCCI, DCCI, BGMEA, EAB, BKMEA, and BTMS demanded to reduce the tax.

They said, “The ongoing economic crisis in Europe, which accounts for over 60 percent of Bangladesh`s exports, has already impacted the readymade garments exports. The tax hike therefore could ruin our export sector and our exporters will be affected.”

Meanwhile, they urged for government’s subsidy in this field.

BDST: 0841 HRS, JUN 25, 2012
Edited by: Maria Salam, Asst Output Editor