Withdraw VAT on domestic raw material purchase: Bangladesh's BGAPMEA

24 Feb '24

1 min read

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The Bangladesh Garments Accessories & Packaging Manufacturers & Exporters Association has demanded withdrawal of value-added tax for export-oriented companies on the purchase of raw materials, goods and services from domestic sources.
The tax at source should also be reduced from 1 per cent to 0.25 per cent for the next five years on all exports, it demanded

The Bangladesh Garments Accessories & Packaging Manufacturers & Exporters Association (BGAPMEA) recently demanded withdrawal of value-added tax (VAT) for export-oriented companies on the purchase of raw materials, goods and services from domestic sources.

The trade body proposed this at a pre-budget meeting with the National Board of Revenue, according to domestic media reports.

Such companies purchase various items, including stationery, from the domestic market for office management, and all such purchases are related to production and export, the trade body conveyed.

The tax at source should also be reduced from 1 per cent to 0.25 per cent for the next five years on all exports, and from 20 per cent to 10 per cent in the case of bank interest earnings, BGAPMEA demanded.

The trade body also demanded that the regulatory duty should be reduced from 30 per cent to 5 per cent.

ALCHEMPro News Desk (DS)

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