At a statement on Saturday, the BGMEA said if the government imposes 1.5 per cent source tax on the garment owners, then it would raise 55 percent to 60 percent risk factors for the woven and knitwear sectors.
In that case, the entrepreneurs will not be able to run their industries, the BGMEA leaders added.
They urged the government to withdraw new source tax imposed in the garments sector and keep it at previous rate of 0.25 percent as of that in fiscal year 2009-10.
“During pre-budget discussions, we requested the finance minister to keep source tax at 0.25 percent, but our proposal was not accepted.”
The source tax could only be imposed on the imported value of the products, not on organisations, the BGMEA said adding most of the industries in apparel sector are small and medium industries and their income from export is also much less, which is generally 1 percent to 3 percent.
In this context, the industries would not sustain if the source tax is more than their income rate, the BGMEA added.
BKMEA demands cut in furnace oil price.
UNB adds: Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) on Sunday demanded tax cut at source on export value and fix it at 0.40 percent to help ensure growth of the sector.
The BKMEA in its post-budget discussion meeting at Narayanganj Club also demanded reducing price of furnace oil so that it can be used as an alternative to gas which has a crisis in the country right now.
It, however, thanked the government and Finance Minister AMA Muhith for reducing duty on imported chemicals used in ETP, extending renewal time of bond license, announcing cash incentive for knitwear sector and other budgetary measures for the sector’s growth.
BKMEA members were present in the meeting.
-UNB, Mon, 13/06/2011
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