Withdraw VAT on raw materials, goods for export-oriented garment factories: BGMEA

The apparel exporters have demanded withdrawal of value-added tax (VAT) on purchase of raw materials, goods and services required for the export-oriented garment factories.

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) made the demand in its budget proposal for 2022-23 fiscal year.

The BGMEA also urged the government to withdraw VAT on production of garment items on sub-contracts.

Besides, the government should keep the source tax on export receipts unchanged at 0.50 per cent for the next five years, it said.

The garment makers' platform shared its budget proposals with a group of journalists through WhatsApp messages today.

BGMEA Senior Vice-President Md Shahidullah Azim said they will place their demand to National Board of Revenue Chairman Abu Hena Md Rahmatul Muneem at a meeting on February 17.

Last fiscal year, the government fixed the corporate tax for the green garment factories at 10 per cent and for the non-green garment factories at 12 per cent.

The BGMEA also urged the government to waive a 10 per cent tax on cash incentive that is given by the government on export receipt as a stimulus to them for new markets and use of local raw materials.