RMG (Readymade garment) exporters have demanded to the government to exempt tax at source for two years on export of apparel products. But in their written proposals, their demand was to reduce tax at source to 0.5{ad71656c61d5cd45d1e1aa04fecadb2e3dd82676fa3651253d22fcb40d1a4af5} from existing 0.7{ad71656c61d5cd45d1e1aa04fecadb2e3dd82676fa3651253d22fcb40d1a4af5}.

The businessmen also urged the government to provide them all types of policy support for next five years.

In a pre-budget meeting with NBR Chairman Md Nojibur Rahman, BGMEA president Md Siddiqur Rahman requested the NBR to not change any policy frequently and urged to take policy for five years.

They also requested to consider it to be the final settlement from the budget for fiscal year 2017-18.

The sector raised a total of 12-point demand for the upcoming budget for fiscal year 2017-18.

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) placed the demands on the sector to the National Board of Revenue (NBR) for the upcoming budget for fiscal year 2017-18.

Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Bangladesh Garments Accessories and Packaging Manufacturers and Exporters Association (BGAPMEA), Bangladesh Jute Goods Exporters Association, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), Bangladesh Textile Mills Association (BTMA) and bounded and non-bounded others sector stakeholders were attended the meeting with NBR at the revenue authorities headquarters on Thursday morning.

According to BGMEA budget proposal, they also recommended the revenue board to set RMG income tax at a minimum rate of 10{ad71656c61d5cd45d1e1aa04fecadb2e3dd82676fa3651253d22fcb40d1a4af5} from the existing 20{ad71656c61d5cd45d1e1aa04fecadb2e3dd82676fa3651253d22fcb40d1a4af5} for the next five years starting from next fiscal year.

The apparel makers have enjoyed the reduced corporate tax rate at 10{ad71656c61d5cd45d1e1aa04fecadb2e3dd82676fa3651253d22fcb40d1a4af5} from 2005 to 2014 under special consideration.

The government, however, aligned the tax rate with the regular rate of 35{ad71656c61d5cd45d1e1aa04fecadb2e3dd82676fa3651253d22fcb40d1a4af5} from FY2014-2015.

Arguing about the demand, the sector leaders said, apparel makers are trying to achieve $50 billion export by 2021, which is set by the Prime Minister Sheikh Hasina.
The industry required huge invest to reach the goal.

On the other hand, the apparel makers have faced challenge to achieve the export target due to price cutting by the foreign buyers, while the transport and lobour salary and others costs are hiked 219{ad71656c61d5cd45d1e1aa04fecadb2e3dd82676fa3651253d22fcb40d1a4af5} by the last five years, it also hiked more than 17 {ad71656c61d5cd45d1e1aa04fecadb2e3dd82676fa3651253d22fcb40d1a4af5} cost of doing business

They also urged the NBR to free traders from filing up VAT returns as the export-oriented industries are enjoying exemption from paying VAT.