Bangladesh garment makers have demanded the continuation of the existing 0.5 per cent source tax on export for the next five years even if they usually demand for source tax to be reduced to 0.25 per cent both before and after the budget is announced every year.
However, this time around, the garment manufacturers came up with the call to keep the tax the same for some time as the Finance Minister in his budget speech on 3 June did not, reportedly, clearly mention any rate of source tax.
Meanwhile, interacting with the media, the President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Faruque Hassan, reportedly, maintained changes in source tax would hamper the business plan.
Faruque also welcomed the Government’s proposals to continue existing budgetary measures for the sector including additional 1.0 per cent cash incentive even as he urged the Government to extend the SME loan limit up to US $ 10 million from existing US $ 5.0 million so as to help small and medium enterprises survive the fallouts of the coronavirus pandemic.
Bharat Tex Special Report 2026 
