Home / Knowledge / News / Apparel/Garments / Bangladesh may consider RMG corporate tax cut
Bangladesh may consider RMG corporate tax cut
01
Feb '16
There may be some relief for the readymade garment (RMG) sector in Bangladesh with Finance Minister AMA Muhith saying the Government may consider the sector's demand to cut corporate tax from 35 to 10 per cent.

The Finance Minister's comment came at a meeting with leaders of three apparel sector bodies - Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), and Bangladesh Textile Mills Association (BTMA), according to a Bangladeshi newspaper.

The government had set a rate of 35 per cent corporate tax for the readymade garments sector from the 2014-2015 fiscal year, which has continued into the 2015-2016 fiscal as well.
The rate was 10 per cent from 2005 to 2014 under 'special consideration'.

BGMEA president Md Siddiqur Rahman said, “The entrepreneurs will not have sufficient capital to reinvest after paying 35 per cent tax. The massive export target set by the government cannot be achieved (with this rate of tax),” he said.

The government has set an export target of $33.5 billion for the current financial year with a growth of 7.38 per cent.

Rahman also urged Muhith to reconsider last year's 35 per cent tax paid by the apparel manufacturers. “The reduced tax (10 per cent) is effective for yarn, dyeing, finishing and jute sectors until June 30, 2015. In this view, the RMG sector also gets this facility,” he said.

Muhith ruled out any retrospective tax cut for 2014-15. “But we can consider what to do for the current year,” he said.

He asked the Finance Secretary and the Revenue Board Chairman to provide estimates of the impact on revenue if the government cut the corporate tax on the sector.

Commerce Minister Tofail Ahmed who also attended the meeting, supported the RMG entrepreneurs' demand. He also urged Muhith to consider the demand, mentioning several issues the entrepreneurs were facing.

“There are Accord, Alliance; they (the entrepreneurs) have to spend to meet compliance. The government must stand by the businessmen during such a period,” he said. (SH)

Fibre2Fashion News Desk – India


Must ReadView All

Apparel/Garments | On 26th Jun 2017

GSTN registration reopens

E-commerce operators and TDS (tax deducted at source) deductors can...

Textiles | On 26th Jun 2017

Expedite release of ROSL pending claims: TEA to Centre

The Tiruppur Exporters' Association (TEA) has again urged Union...

Textiles | On 26th Jun 2017

'Export promotion schemes to continue under GST regime'

The export promotion schemes will continue under GST regime, said...

Interviews View All

Awen Delaval
Samatoa

'Natural fibres are appreciated for traditional authenticity'

Anvita Mehra
Confidential Couture

‘It is going to take some time for Indian buyers to get accustomed to...

Luke Otten
Wigwam Mills Inc

Wigwam aims to recycle discarded yarn that doesn’t make it through the...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
July 2017

July 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search