BigstockCurrently, the sector enjoys 0.25% source tax for the outgoing fiscal yearTax at source for the country’s apparel sector, the $34 billion industry, increased to 0.5% from 0.25% for the fiscal year 2020-21. Currently, the sector enjoys 0.25% source tax for the outgoing fiscal year. “Exports of goods and services, including that of RMG, have faced a downturn due to the outbreak of the Covid-19 pandemic. I propose to amend the Ordinance to fix the rate of withholding tax on all sorts of export proceeds including that of RMG at 0.5% instead of the existing rate of 1%, he added. However, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) had demanded to keep the rate unchanged.

Source: Dhaka Tribune June 11, 2020 09:45 UTC