Exporters from different sectors of Bangladesh have demanded a cut in tax at source on export bill and withdrawal of tax on cash incentives in the country’s budget for fiscal year 2015-16. Exporters have sent a proposal to the National Board of Revenue (NBR) to cut tax at source on export to 0.30 per cent from existing 0.60 per cent.

Currently, only apparel exporters get 0.30 per cent tax rates on export bill while others are paying 0.60 per cent. Frozen foods exporters, textile mills, jute, and plastic sectors have now sought the same amount of tax rate as paid by the apparel exports to bring uniformity. Bangladesh Textile Mills Association (BTMA) leaders have also urged the NBR to continue special income tax rate at 15 per cent for primary textile sectors including spinning, weaving, dying, printing and finishing mills, which is scheduled to expire in June, 2015.

The BTMA also sought tax holiday facility for new investment in spinning, weaving and other factories under primary textile sector to encourage investment in the sector. Despite being the second largest exporter after China, issues like political unrest and non-compliance are hindering the growth of exports industry in Bangladesh.

www.nbr-bd.org