Tofail against raising source tax from exports
Stating that the country's garments sector would face new challenges due to global politics, Commerce Minister Tofail Ahmed yesterday urged Prime Minister Sheikh Hasina and Finance Minister AMA Muhith not to increase source tax on export to 1.5 percent from the present 0.6 percent.
“It is not the right time...as exporters will face a fresh challenge following the fast changing scenario in Europe...as pound sterling and Euro are getting weak against dollars following Brexit,” he said.
Justifying his stance, Tofail said India was trying to rank second in the global apparel market, announcing a Rs 6,000 crore incentive package for its readymade garment sector.
This will be a “double blow” for exporters, Tofail told a parliamentary discussion on the budget for 2016-17 fiscal where Muhith proposed the increase.
As the majority of UK people voted to leave the European Union, Bangladesh will have to re-negotiate trade issues with the UK, he said.
Bangladesh has been enjoying duty and quota-free access to the EU market under the Everything but Arms (EBA) arrangement while the UK is also a big market.