Dhaka, June 8 (UNB) – Apparel exporters on Friday voiced deep concern over the proposed higher tax at source on all types of export in the proposed budget for the  2012-13 fiscal year and urged the government to reconsider it for the sake of maintaining the export growth.

They urged the government to seriously think about the proposed tax hike at source and reconsider the proposal to help continue the desired growth of the readymade garment exports amid global economic downturn.

“Tax at source on exports has been doubled by increasing it from 0.60 percent to 1.2 percent. That means the direct tax saw a 100 percent rise. It’s totally contradictory to the RMG industries,” said BGMEA president M Shafiul Islam Mohiuddin told a press conference at its conference room in the city.

The BGMEA (Bangladesh Garment Manufacturers and Exporters Association (BGMEA) arranged the press conference to give its formal reaction to and observations about the proposed budget.

Shafiul Islam said BGMEA leaders think that such tax rate fixation in the present situation would disrupt the desired growth of the garment industries. “I hope the Prime Minister and the Finance Minister will reconsider the tax issue before the national budget is passed.”

Referring to the global economic slowdown, he said the demand for Bangladeshi garment in the global market has marked a fall due to financial downturn during the last fiscal year.
 
“Bangladesh’s garment export to the EU market has declined by some 15.40 percent while to the USA 28.40 percent in the current year,” the BGMEA president said.
The business leaders welcomed some of the government’s steps taken in the new budget to encourage the industrialisation in the country, he said.

Shafiul Islam mentioned that small and medium industries will particularly get benefited as the government proposed complete VAT exemption from rent of places and establishments for the export-oriented RMG factories.

BGMEA first vice president Siddiqur Rahman, vice president Faruque Hassan, vice president (finance) SM Mannan Kochi were, among others, present at the press conference.