Bangladesh Garment Manufacturers and Exporters Association have demanded reduced corporate tax at 10 per cent from the proposed 15 per cent and withdrawal of the source tax for the next three years.

Every year, the government increases corporate tax and source tax in the RMG sector and BGMEA brings it down through discussion with high ups of the government.

Finance minister AMA Muhith in his national budget speech proposed to increase corporate tax rate for manufacturers and exporters of readymade garments to 15 per cent from existing 12 per cent. The finance minister also proposed tax rate for green building certificate holding apparel companies at 12 per cent from existing 10 per cent.

The RMG sector earned 83 per cent of total foreign currency and was the only one sector generating employment in the country. Muhith demanded waiver from submitting value added tax returns to the VAT office.

BGMEA president Md Siddiqur Rahman , however, termed the proposed budget business-friendly saying that it would create employment in the country. Although the BGMEA president demanded corporate tax cut and weaver from source tax.