It was my pleasure to be present at the 'Pre-budget Meeting with the Prominent Economists' being a delegate of Bangladesh Knitwear Manufacturers & Exporters Association-BKMEA hosted by National Board of Revenue, Bangladesh (NBR) on 27 March, 2016 addressing FY 2016-17 Budget and coined Revenue Collection target and process.
Well, I placed 3 recommendations at the meeting which are expressed here-below,
- It will be better if the present 1.1 million (i.e., regular and irregular) tax payers are not overburdened with high tax rates but as if there are 8 million economic units existing in Bangladesh and this mesoeconomic class is resilient, therefore NBR can easily go for widening this existing total number of tax payers near to 8 million by awareness building consecutive programs, this will help national revenue to whoop easily at the targeted level.
- As a whole, Bangladesh RMG Industry-BRMGI (e.g., mainly the woven sector) does 30%-35% value addition within the country, it means this industry imports 65%-70% raw materials from outside the country and it is taxed then, so when the final Ready-made Garments are exported then the Source Tax on entire Export Price should not be imposed rather it should be imposed on the value of Cutting and Making, because this is actual earnings.
- When BRMGI uses domestic yarns-fabrics then it gets 5% financial incentive, but on this amount later, 37.50% tax is imposed, hence, taxes on these kinds of financial incentives should be removed completely to assist BRMGI for reaching the Vision 2021 of present government.
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