Knitwear manufacturers and exporters in Bangladesh have urged the government to reconsider the revised source tax on export products in the proposed budget for the 2022-2023 fiscal year.

Mohammad Hatem, Executive President, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), says, the source tax has been increased from 0.5 per cent to 1 per cent against exports.

Already the prices of raw materials, transport and freight costs have experienced a sharp hike after the pandemic and the ongoing Russia-Ukraine war has made the situation further volatile.

Production costs have risen significantly but we are not getting the fair price from the buyers accordingly, he added.

Moreover, the government has hiked the price of gas recently after hiking the fuel oil prices just a few months ago.

At such a time, the increase in source tax will additionally burden the export industry, he added.