The Bangladesh Government is planning to increase the source tax on exports from the current 0.5 per cent to 1 per cent amidst gloomy global financial outlook and the export growth is expected to slow down somewhat in the days to come on account of the same.
Meanwhile, speaking to the media, economists have, reportedly, maintained the National Board of Revenue (NBR) may want to raise the source tax on exports considering it the best possible option to increase revenue collection even if they underlined if the rate of source tax is equal for all, non-apparel sectors will lag behind in the effective rate of protection considering the fact that the readymade garment sector enjoys some special benefits from the Government and this needs to be taken into consideration.
Reports further added, the country’s apex garment makers’ body BGMEA, this time around before the budget presentation, has not made any demand of reducing the source tax, rather recommended the existing rate be kept unchanged for the next five years.
