Dhaka: The government has proposed to raise the tax at source on export for all products, including the readymade garment sector at 1% from the existing rates to be enacted from fiscal year 2015-16.

Finance Minister AMA Muhith, while unveiling budget said the government reduced the source tax on export of garments and others at 0.30% and 0.60% respectively considering special situation.

‘Our readymade garment sector enjoys different types of benefits. The other export products also enjoy this benefit. The benefit was provided for a one year period,’ he said.

The minister proposed withdrawal of the benefit and imposition of 1% tax in all export products including readymade garments, terry towel, carton and accessories, jute and jute products and frozen fish.

Muhith also said the tax will be considered as final settlement.

The government in April 2014 reduced the source tax on export for garments at 0.3% from existing 0.8% and for others at 0.6% from 0.3% to help the exporters.