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Bangladesh Export Body Calls For Abolishing Of VAT And Reduction In Corporate Tax

• By  Textile Excellence
• May 24, 2017

The government of Bangladesh is under pressure from their exporters as the country’s premier export body, the Exporters Association of Bangladesh (EAB) demanded a significant cut in corporate tax besides repeal of Value Added Tax (VAT) that takes effect on local goods and services. The EAB president, Abdus Salam Murshedy asked for corporate tax on export-oriented RMG, home textile and terry towel  to be brought down to 10 per cent.

At present, corporate tax for the RMG sector stands at 20 percent and that for home textile and terry towel stands at 15 per cent.  In addition, “Source tax for these items must be reduced from 5 per cent to 3 per cent,” said Murshedy. Currently, export-oriented RMG is exempted from VAT on product export and import besides some local products and services pointed out Murshedy, adding “Yet we need relief for all local products that are subject to VAT.”

“This will make the export-oriented industries more competitive,” he explained.  

Textile Excellence