Ahead of the forthcoming national budget for the fiscal year 2021-2022, businesses in Bangladesh have demanded a set of financial benefits including reduction and waiver of income tax and value-added tax (VAT) rates even as they underlined that the National Board of Revenue (NBR) should reduce the rates of source tax on export, corporate income tax, VAT and other taxes to help businesses survive amidst the fresh wave of the coronavirus pandemic and rebound from the losses.
The businesses came forth to put across these demands at the 41st meeting of the budget consultative committee of the NBR held virtually on 18 April (Sunday), and jointly organised by the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) and the revenue board.
Taking part in the NBR-FBCCI budget consultative committee meeting, the President of the apex garment makers body, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Faruque Hassan, reportedly, maintained that the Government should reduce source tax on export of apparel products to 0.25 per cent from current 0.5 per cent and continue the rate for the next five years even as he demanded continuation of the existing reduced corporate tax rate for the sector for the next five years, reduction in source tax on cash incentive and VAT waiver on export-related services while Mohammad Ali Khokon, the President of Bangladesh Textile Mills Association (BTMA) on his part called for exemption from payment of AIT, VAT, AT and other taxes on manmade fibre to make the sector competitive on the global market.
