Bangladesh to double supply tax rate on exports to 0.5%

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Bangladeshi exporters will be levied 0.5 % tax at source of their export earnings from another fiscal as the prevailing 0.25 % tax benefit ends this fiscal, regarding to tax proposals for 2020-21 introduced by finance minister AHM Mustafa Kamal. On the other hand, existing reduced corporate taxes benefits for garments and knitwear sectors have already been extended for two years to 2022 following the profit expires on June 30.

Taxpayers found in the garments sector would be benefited from the measure, Kamal said found in his budget speech in parliament recently.

Apparel manufacturers, who take into account more than 80 % of the country's export earnings, currently enjoy 12 % corporate taxes on incomes, nearly a good third of the existing corporate tax of 35 per cent for non-listed corporations. The rate is 10 % for holders of green setting up certificates.

Export receipts fell by 18 % year on time to $31 billion in July-May of the existing fiscal over figures through the same period in the last fiscal, according to Bangla mass media reports.

Nevertheless, shipments trebled to practically $1.5 billion in-may from just over half of a billion in April this season, according to Export Advertising Bureau data.

Income tax legislation stipulates that exporters fork out a 1 % source taxes on the proceeds of their exports. However the National Plank of Revenue (NBR) cut the fee through notifications on countless occasions during the past two years when confronted with demands from exporters.

The NBR reduced source tax on export earnings of garment twice in fiscal 2018-19--from 1 % to 0.6 % in September 2018 and additional to 0.25 per cent in January the next year--following requests from garment makers.
Source: https://www.fibre2fashion.com

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