Exporters demand tax cut, in budget

Exporters yesterday urged the government to reduce the tax at source for fiscal 2013-14 as businesses have faced problems in shipping for political turmoil and faltering global demand.
Leading trade bodies Bangladesh Garment Manufacturers and Exporters Association and Bangladesh Knitwear Manufacturers and Exporters Association along with exporters association, plastic goods and garments accessories makers and exporters placed the demand separately.
The appeals were made at a meeting at the National Board of Revenue ahead of the budget for the next fiscal year starting in July.
“Our garments exports have fallen with reducing demand in the USA and Eurozone,” said BGMEA President Atiqul Islam.
He said overall global demand for apparel declined and urged imposing taxes on manufacturing instead of 0.8 percent tax at source on the value of export items.
Exporters also demanded an extension to the time on bonded licences from an existing two years to three years and the auditing interval from three months to six months.
“We urge the government to take a decision on taxation by considering the global market and domestic political situation,” said Abdus Salam Murshedy, president of Exporters Association of Bangladesh.
He said repeated shutdowns have affected the shipment of goods with transportation costs rising.
“We have to insure our goods before exporting because of the current situation,” he said, adding that small and medium factories face hassles for the high cost of air freight.“So a cut in the tax at source is necessary.”
Mohammad Hatem, first vice president of BKMEA, agreed with Murshedy, and urged NBR to impose taxes on value addition.
He demanded reducing the tax at source to 0.5 percent from an existing 0.8 percent for the next fiscal year.
Citing problems with gas and electricity, he said many knitwear makers use furnaces to run their factories.
“But increased prices of furnace oil have pushed our production costs up. We appeal for the duty-free import of furnace oil,” said Hatem.
Md Jasim Uddin, president of Bangladesh Plastic Goods Manufacturers and Exporters Association, wanted the value of plastic waste to be unified as revenue officials impose duties by assessing values differently.
“This discrepancy in valuation should end.”
Rafez Alam Chowdhury, president of Bangladesh Garments Accessories and Packaging Manufacturers and Exporters Association, urged the government to give authority to the association to issue utilisation permissions for its members.
Sudipta Kumar Das, vice president of Bangladesh Motion Picture Exhibitors Association, demanded reducing the value added tax on cinema hall tickets.  “It will encourage more people go to the cinema halls.”
Farid Uddin of Creative Books Publishers Association wanted the government to declare the income from book exports to be tax free to encourage exports. He also demanded that donations to library establishments be tax free.
NBR Chairman Md Ghulam Hussain said it will give authority to the trade body after framing the budget for fiscal 2013-14.
He said revenue collection has to be increased by 21 percent for fiscal 2013-14 as per the Sixth Five Year Plan.
“It is one of the toughest challenges for NBR.”
It means that Tk 136,000 crore has to be collected in revenue next fiscal year, he said, but added that no new or additional taxes would be levied.
Hussain said the tax authority stresses on automation, reduction of the cost of doing business as well as prevent leakages from bonded warehouses and duty evasion.
“Whoever we find guilty, we will handle mercilessly.”
Hussain also said markets are closed for the recurrent shutdowns, which affects revenue earning.