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25 April 2024

Business Insider Bangladesh

Withdrawal of VAT on raw materials’ purchase demanded

BI Desk || BusinessInsider

Published: 00:12, 23 February 2024  
Withdrawal of VAT on raw materials’ purchase demanded

Photo: Collected

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

The trade body today made the proposal at a pre-budget discussion with the National Board of Revenue (NBR) held at the NBR Bhaban in the capital's Agargaon area, reports BSS.

In the budget proposal, BGAPMEA informed that export-oriented industries purchase various items, including stationery, from the local market for office management.

All purchases are related to production and export, the body mentioned.

Besides, the trade body demanded reducing the tax at source from 1 percent to 0.25 percent for the next 5 years on all exports and from 20 percent to 10 percent in the case of bank interest earnings.

The body also demanded a reduction of Regulatory Duty (RD) from 30 percent to 5 percent.