In what is seen as a big boost to the readymade garment industry of Bangladesh that has been facing fall in apparel export earnings lately, the Finance Ministry has waived exporters from payment of stamp duty at the rate of 0.2 per cent on deferred payment recently.
The central bank of the country on Monday issued a circular in this regard, asking all banks to follow the Finance Ministry clarification on stamp duty, which underlined that the stamp duty on the deferred export bill of exchange would not be applicable to exports.
“Based on a law way back in 1899, the stamp duty is imposed on import in the subcontinent but never on export,” stated President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Dr. Rubana Huq, adding, “We thought that it was reasonable to seek for an exemption and we did…We explained in a proper manner and we got it.”
As per reports, the Finance Ministry, upon clarification from the Law Ministry, gave the waiver on 8 December 2019 amid demand for the stamp-duty withdrawal from the exporters especially by the BGMEA in October last year.
