Dhaka, June 13 (UNB) – Bangladesh-Malaysia Chamber of Commerce and Industry (BMCCI) on Wednesday strongly opposed the proposed 1.2 percent tax at source on all types of exports and said it would hit the export-oriented industrial units hard, especially the readymade garments.
 
“We think the overall proposed budget is business-friendly but 1.2 percent tax at source on all exports will make the survival of export-oriented industries difficult,” BMCCI President Syed Nurul Islam said while giving his budget reaction.
 
He urged the government to reconsider the proposal for the sake of keeping the export industry afloat.
 
On June 7, Finance Minister AMA Muhith proposed imposing an identical tax rate of 1.20 percent deducted at source on all kinds of exports in place of the existing rates of 0.60 percent and 0.70 percent.
 
Nurul Islam also voiced concern over the government’s targeted borrowing from the banking channel. “It’ll create further liquidity crisis and shrink credit flow to private sector as well fuel the inflation.”
 
Muhith mentioned that the government’s target of borrowing from the banking sector in the coming fiscal is Tk 23,000 crore to meet the budget deficit.