Bangla RMG Accessory Makers Seek 3-Year Corporate Tax Suspension

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Clothing accessories manufacturers in Bangladesh have recently applied for various licenses to be renewed every three years to help the industry save time and money. They also demanded the suspension of corporate taxes for three years, saying many factories remained closed or did not resume operations due to non-payment by buyers and insufficient government financial support since. March 2020.

All licenses are now mandatorily renewed every year.

Manufacturers and exporters of accessories and packaging presented the demands to be included in the next fiscal year’s budget during a pre-budget meeting with the National Board of Revenue (NBR), according to Bangladeshi media.

Manufacturers of clothing accessories in Bangladesh have applied for the renewal of various licenses every three years to help the industry save time and money. They also demanded the suspension of corporate tax for three years, saying many factories were closed or had not resumed operations due to non-payment by buyers and insufficient government support since March 2020. .

Moazzem Hossain Moti, chairman of the Bangladesh Accessories and Packaging Manufacturers and Exporters Association, said around 30 licenses or certificates are needed to set up a factory.

If a three-year renewal cycle is allowed, the government will benefit from collecting revenue up front and the time and effort industry spends on the renewal process could be saved, he said.

Since buyers do not raise product prices, factories are only operating to continue running their business during the pandemic without making a profit, he said, adding that in such a situation, it was difficult to pay. withholding tax for factories.

Therefore, the leaders of the association asked the government to reduce the withholding tax to 0.25% from the existing 0.5% and to set the rate as a final settlement for the next three years, mainly for support small and medium factories.

Their other demands included providing cash incentives, allowing subcontracting facilities to “reputable exporters” and implementing the NBR ruling to allow the trade body to issue a license. of use.

Fibre2Fashion (DS) News Desk

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