Exporters for single digit bank rates, source tax cutHigh rates is a major impediment to investment in the country: Murshedy→ staff correspondent
  Exporters Association of Bangladesh (EAB) president Abdus Salam Murshedy yesterday urged the government to bring down bank interest rate to single digit and reduce income tax at source on exportable goods at 0.25 per cent instead of proposed 1.5 per cent.

Providing 16-18 per cent interest for borrowing money from banking system is now a major impediment to investment in the country. Moreover, proposed increase in income tax by 2.75 times at source on exportable will fuel this impediment,” he said at a post-budget press conference at a city hotel.

Murshedy said the tax at source should be fixed at 0.25 percent considering the weak infrastructure and current international market so that the export sector can survive in the global competitive market.

He demanded the government for reducing furnace oil and diesel prices and re-fixing those at Tk 26 and Tk 30 per litre respectively as the electricity crisis still exists in the country.

The former BGMEA president Murshedy urged the government to give tax free import facility for capital machinery, dying, chemical and other raw materials for textile and apparel sector.

He also called upon the government to allocate money for establishing a packaging institute terming it is very important for increasing the country’s export volume.

He proposed withdrawal of VAT (value added tax) on place and installations of export-oriented units, which is now 15 percent.

On tax holiday facilities, he said the tax holiday facilities should be given for next five years instead of two years for rapid industrialisation and creating new entrepreneurs.

Murshedy called upon the government to take budgetary measures for the workers of readymade garments factories and introducing rationing system for them.

“Over a crore workers are engaged in the sector. We urge the government to bring the workers under the rationing system so that they can get rice, pulse, ata, sugar and edible oil at affordable price,” he said.

Murshedy sought cash incentives for the exporters to encourage them in contributing more to the national economy.

NRB (Non Resident Bangladeshi) president Shekil Ahmed demanded for the provision of investing undisclosed money in the capital market for the betterment of the country’s economy.

“It is very difficult to raise investment by keeping 48 to 50 per cent money, termed undisclosed, out of the economy. So, the government should allow the money in some important sectors including share market,” he said.

Bangladesh Gray and Finished Fabrics Mills and Exporters Association president M Harun Ur Rashid, Silk Manufacturers and Exporters Association of Bangladesh president Alauddin Ahmed and representatives of other export organisations were present.

News: Daily sun/ Bangladesh/ Jun-20-2011