Govt. should have to decide to impose source tax as prevailing 0.5% instead of 1.00%- Ekram Hossain, Director, AZ Group

Being a person of the 100% export oriented Garments Industries arena it has come to my observation that source tax increased in this budget from 5% to 100% that means 100 times excess from prevalling rate.

Impacts of inflation, unemployment & steady demands influence worldwide economic recessions may be alarming. In this situation growth of readymade garments may not be sustained rather than decrease. By this time cost of raw materials, container fare, fuel price increased & influenced production cost higher almost 40%. So, considering the present world situation source tax should not impose 1% instead of prevailing .5% on garments export by observing the following situations; Just after 2 years’ dusty pandemic effects of covid-19 now garments industries are going to U-turn into positive trend. But impose of additional tax will be a barrier. Present world unrest situation garments industries facing lot of challenges.

Russia Ukraine war effects increase fuel & food price, on the other hand Europe & most of the countries of the world value of EURO & USD becoming equal, as a result negative impacts are arising on the garments pricing for European market. In our country pressure on balance of payments increased due to decreasing inflow of foreign remittance

Finally, I am providing my opinions that for the sake of 100% export oriented garments industries which is the largest sector in our country contributed lion portion of our economic growth Govt. should have to decide to impose source tax as prevailing 0.5% instead of 1.00% proposed in unveiled budget2022-23.