Bangladesh cuts corporate tax on apparel
06/06/2016
“As part of our continued support, I propose to reduce the tax rate of the RMG sector from 35% to 20%,” said finance minister Abdul Muhith in his latest budget speech. He acknowledged that the RMG sector is one of the main exporting sectors in Bangladesh and that it makes important contributions to GDP growth and employment.
Between July 2015 and April 2016 the country’s garment exports were $27.6 billion, up from the $25.3 billion during the same period of the previous year. Exports of woven garments and knitwear increased 12.7% and 7.3% respectively.
“We are not happy with the reduction proposal,” said Siddiqur Rahman, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA). “For attracting higher investment and further expansion of factory capacity we need policy support from the government.”
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