Home / Knowledge / News / Apparel/Garments / Bangladesh may consider RMG corporate tax cut
Bangladesh may consider RMG corporate tax cut
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

Textiles | On 6th Dec 2016

Garments, yarn export entitlement quota extended for 1 yr

Indian government has extended the export entitlement quota for...

Textiles | On 6th Dec 2016

Cash inflow will revive sales: Textile industry

The textile industry representatives are hopeful of revival of...

Courtesy: SIMA

Textiles | On 6th Dec 2016

Amma gave special attention for textile growth in TN: SIMA

Former Tamil Nadu chief minister J Jayalalithaa paid special...

Interviews View All

Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd

Increasing prices and lack of demand main issues facing industry

Akash Khetan
Narayan Tex Fab

I find it hard to find professionals in Surat

Nitin Soni
Dolphin Jingwei Machines

Taxation policies need to be made simpler

Kerem Durdag
Biovation II LLC

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

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Silke Brand-Kirsch
Schlegel und Partner

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

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

December 2016

December 2016

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


Browse Our Archives


Advanced Search