Hailing the proposed budget for fiscal year (2022-23), the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) on Monday demanded of the government to keep intact the tax at source at 0.5 percent for the next five years to give comfort to this sector during this crisis time.
The demand was raised in the post-budget press conference by the BGMEA, held at the Westeen Dhaka, Gulshan in the capital.
"It's our earnest request, if the tax at source against exports could remain at 0.5 percent for the next five years, then this sector will remain in comfort during this crisis time. If the industry sustains, then revenues will come while newer employments will be generated," said BGMEA President Faruque Hassan while addressing a press conference in a city hotel.
BGMEA senior vice president SM Mannan Kochi and vice president Md Shahidullah Azim and board directors were present, among others, on the occasion. BGMEA director Barrister Shehrin Salam Oishee moderated the press conference.
Faruque also hoped that Prime Minister Sheikh Hasina and Finance Minister AHM Mustafa Kamal would consider the issue of keeping the tax at source at the existing 0.50 percent.
He said that the government and all concerned should remain prepared to face the possible recession in Europe and USA adding, "Under the circumstances, the march forward of RMG sector, the highest foreign currency earning sector, should be kept smooth by any means,"
Giving an analysis, he said that in the outgoing fiscal year (FY22), the export earnings is likely to fetch $41 billion or around Taka 3.56 lakh crore considering the Taka and dollar exchange rate at 87. Under such estimation, Taka 1,783 crore is likely to come as tax at source.
He informed that the exports earnings are likely to reach $45 billion or around Taka 4.14 lakh crore in the next fiscal year (FY23) considering the exchange rate at 92. In such condition, Taka 2,070 crore is likely to come as tax at source.
Replying media queries, Faruque said he welcomes the government's step for providing tax amnesty for bringing in the undisclosed money and wealth from abroad in the mainstream of the economy.
"The whole of the world is now under pressure of foreign currency while demand of RMG items is declining and there is further possibility of fall in demand. Under such circumstances, if such foreign currency comes through such provision, then it's good. We'll stand beside such decision of the government," he added.
He told another questioner that necessary investments are being made to boost the production of man-made fibers while export of such item is likely to pick up from next year.
Replying to another question, the BGMEA president said that all concerned including the business community would definitely avail benefits from the Padma Bridge once it is officially launched on June 25.
He also mentioned that the BGMEA has been working constantly for ensuring welfare of the garment workers.
