Garment manufacturers and exporters in Bangladesh want the tax at source on the readymade garment sector to be at the previous 0.5 per cent from the existing one per cent.
They say they have made this request considering the apparel sector is now passing through a tough time considering the current global situation and that without policy support, it will be hard for them to maintain their competitive edge in the garment industry. They say if the tax at source is made at 0.5 per cent for the next five years, it would be possible for them to maintain export competitiveness and if the industry were to be kept alive, there will be newer employments while export competitiveness and revenue income can also be increased through raising the competitive edge without raising the tax rate.
The tax at source on the apparel sector was increased to one per cent from 0.5 per cent in the current fiscal year. Bangladesh hopes to reach a share of eight per cent in the global apparel market within this year. Although there are some signs of a slowdown in garment exports now, because of the war-related crisis, the global economic turmoil, and a record inflation affecting retail businesses, it is expected that shipments to new destinations, particularly to Asian markets, will witness growth.