Muhith assures 0.7% source tax on export earnings

Finance Minister AMA Muhith today assured of bringing down the source tax on export earnings to 0.7 percent from 1.5 percent, moved by a request from Prime Minister Sheikh Hasina.

In the budget for 2016-17 fiscal year, Muhith had proposed a source tax of 1.5 percent which drew criticism from businessmen – mostly apparel owners and exporters.

Today, while delivering a speech at the parliament focused on the proposed budget, Prime Minister Sheikh Hasina urged the finance minister to cut down the source tax to 0.7 percent.

She also requested Muhith to keep the prevailing 0.60 percent tax at source on the export earnings till June 30 – the end of 2015-16 fiscal year.

In response, the finance minister assured the Jatiya Sangsad that the source tax on export earnings would be brought down to 0.7 percent.