“India and Pakistan, the two close competitors of Bangladesh, are offering incentives to their exporters to encourage investment and to grab more market share,” reportedly said Senior Vice-President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Faruque Hassan, adding, “If the readymade garment (RMG) exporters can capture more market share, it will help boom other industry like backward linkage. It would have been better for the exporters if the Government kept the existing tax at source rate at 0.6 per cent. Since the Prime Minister urged the Finance Minister to set the source tax at 0.7 per cent, I think we should accept it.”
On the other hand, reacting to the new Source Tax as set by the country’s Finance Minister, President of Exporters Association of Bangladesh (EAB) Abdus Salam Murshedy reportedly maintained, “By reducing the proposed Tax at Source to 0.7 per cent for the exporters, the Government once again has proven itself business-friendly,” but added that it would have been better if the Government retains the 0.6 per cent source tax rate, more so for the leather industry in Bangladesh, which according to Salam requires ‘special attention’ as it is going through relocation.
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While thanking Prime Minister Sheikh Hasina for her bold steps in favour of business community, the EAB President underlined that the leather sector is one of the major export earners for the country.
