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The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has sought scope to pay reduced source tax retrospectively from July 01.
The new rate-0.25 per cent from 1.0 per cent-was made effective from October 21 by a statutory regulatory order (SRO) of the National Board of Revenue (NBR).
With this fresh order, exporters will not be able to claim refund or adjust the paid source tax for the period from July 01 to October 20.
The reduced rate will remain valid up to June 30, 2020.
Demanding the retrospective reduced rate, BGMEA president Rubana Huq has written to NBR chairman Md Mosharraf Hossain Bhuiyan.
In a letter, she said apparel exporters would face financial losses for not giving the tax benefit with retrospective effect.
Garment industry is now passing a transitional period, the BGMEA chief mentioned.
Business operating costs have risen by some 30 per cent for a steady fall in export items globally, a hike in workers' wage and other adverse situations, she cited.
Ms Rubana requested NBR to issue an instruction by making the reduced tax effective from July 01.
Income tax officials, however, said they have made the reduced tax effective from October 21 as approved by finance minister AHM Mustafa Kamal.
There is no instruction from the government high-up yet to issue an SRO of the reduced source tax with retrospective effect, they added.