The BGMEA, an organisation of entrepreneurs in the readymade garments sector, has requested the government to keep the rate of source tax unchanged without increasing it.
The organisation has requested Prime Minister Sheikh Hasina and Minister of Finance AHM Mustafa Kamal to maintain the current rate of 0.5% for another five years. The request was made by BGMEA in a notification in response to the presentation of the budget.
Earlier, in the proposed budget for the fiscal year 2022-23, the Minister of Finance had proposed to double the source tax to 1%. But BGMEA thinks that it is possible to increase the revenue without increasing the tax rate on the garments sector.
According to the organisation, the revenue from garments exports in the last fiscal year was 31.45 billion dollars. Revenue is expected to reach 41 billion dollars this year.
In a statement, BGMEA Acting President SM Mannan Kochi highlighted the international situation, including the Russia-Ukraine war, and said that the demand for clothing in the world market will decrease in the future. Considering the overall situation, the government will accept the demand to keep the rate of source tax unchanged.
