Apparel Online India Magazine December 1st Issue 2018 | Page 52

BEYOND INDIA THE LATEST NEWS HAVE YOUR SAY For the latest news on apparel and textile, make sure that you visit https://apparelresources.com/top-news/ Write to Apparel Resources, B-32, South Extension-1, New Delhi (110049), India or email: [email protected] NBR to review B'desh RMG exporters' proposal to lower source tax Following the implementation of the new minimum wage in December and reported clamour from garment makers for incentives in view of the same, the National Revenue Board (NBR) has reportedly agreed to review the industry’s proposal to cut source tax on export earning, claimed media reports. As per the report, the country’s apex garment makers’ body, Bangladesh Garment Manufacturers and Exporters Association has reportedly sought reduction in income tax at source on export proceeds from existing 0.60 per cent to 0.25 per cent as part of incentive package to implement the new minimum wage besides asking NBR to provide benefit for five years instead of the current practice of lowering source tax yearly on ad hoc basis. It may be mentioned here that amidst falling profit margins and increasing overheads, the garment manufacturers have expressed fear of business profitability if the new minimum wage is implemented without any financial aid from the Government. Keeping in consideration the sentiments of the business community, Commerce Minister Tofail Ahmed in September reportedly maintained that his Government was mulling more benefits for the apparel sector to ensure that it could remain competitive in the global market following the increase in minimum wage. As per the report, NBR officials reportedly underlined that they were not in favour of a proposal of general exemption but, in most cases, agreed with such proposal in line with Government’s instruction. NBR would reportedly take a call on this issue as per instructions received from the Government to this end. It may be mentioned here that NBR in September this year slashed the tax to 0.60 per cent from 1 per cent reinstated in the budget for the current fiscal year 2018-19. Bahamas Government urges garment firms to avail customs duty benefits The Government of Bahamas has urged the garment companies in the country to avail the duty benefits to reduce the cost of importing goods. In a statement released by the Ministry of Finance, it was mentioned that nearly 154 applicants have been granted the benefits ever since the policy was announced in July 2018. The Ministry has said that it will encourage other businesses also to take complete advantage of the tax benefits to not only reduce the business cost but also the The Ministry of Finance made it clear that it will also conduct spot checks on these stores to determine their compliance... 52 Apparel Online India | DECEMBER 1-15, 2018 | www.apparelresources.com price for retail shopping. The garment and shoe firms have been asked to advertise this in their outlets and inform the consumers about the low prices that resulted from the custom duty being waived off. The Ministry made it clear that it will also conduct spot checks on these stores to determine their compliance and also to check whether the consumers have been properly communicated about the reduction of price. To waive off the duty by 20 per cent would not only make shopping affordable but also increase competitiveness among local retailers.