Corporate tax increase for garments not desirable: BGMEA
‘The budget which the Finance Minister Abul Maal Abdul Muhith proposed for the year 2018-19, is business friendly but the proposal that was made in the budget for increasing corporate tax in garments industry is not desirable.’
In a post budget press conference held at the BGMEA bhaban on Saturday president of the organization Siddiqur Rahman made this comment.
The corporate tax rate was increased from 12 percent to 15 percent in the proposed budget and it was increased from 10 percent to 12 percent for the green industry.
Siddiqur Rahman said, this is not desirable, we will solve the issue through discussions. But overall the budget is business friendly. Employment and investment will increase through this budget.
He said, budget will not be made based on the garments industry only. There is no good news or bad news for the garments industry in this budget. The main problem for this industry is VAT. There will be harassment if there is VAT. So we are making demand for keeping the export sector free from VAT.
The BGMEA president said, our demand was to withdraw tax at source from garments industry. But there is no specific direction in the budget proposals. We hope that the matter will be solved through discussions.