Home / Knowledge / News / Apparel/Garments / Bangladesh to cut corporate tax for RMG sector by 15%
Bangladesh to cut corporate tax for RMG sector by 15%
03
Jun '16
The Bangladeshi government has proposed to reduce corporate tax to 20 per cent from the existing 35 per cent for the country's export-oriented readymade garment industry.

“As part of our continued support, I propose to reduce the tax rate of the RMG sector from 35 per cent to 20 per cent,” said Finance Minister Abdul Muhith in his budget speech on Thursday.

The Finance Minister acknowledged that the RMG sector is one of the main exporting sectors of Bangladesh. This sector is making important contribution to the GDP growth and employment generation.

Muhith said during July-April of current fiscal year, Bangladesh's garment export earnings stood at $27.6 billion compared to $25.3 billion during the same period of the last fiscal year.

Export earnings from woven garments and knitwear recorded an increase of 12.7 and 7.3 percent respectively. Notably, among the main export markets, exports to both the USA and Euro zone have increased.

Referring to the textile sector, Muhith said ,“This sector has developed as a big and strong backward sector. Addressing its demand as well as to help it to move forward, duty on stripping chemical is proposed to be reduced to 15 per cent from the existing 25 per cent. Duty of flax fiber and spandex/elastraometrics applicable now at 10 per cent, is proposed to be reduced to 5 per cent.”

Muhith said the government is providing “substantial tax benefits” to the apparel sector acknowledging its contribution to the economy. (SH)

Fibre2Fashion News Desk – India


Must ReadView All

Textiles | On 28th Jun 2017

GST and textiles industry: Analysis and opinion

The Goods and Services Tax (GST) is at long last all set to be rolled ...

Textiles | On 28th Jun 2017

India probing dumping of polyester yarn by China

Indian government is probing anti-dumping allegations against a...

Courtesy: Raymond

Apparel/Garments | On 28th Jun 2017

Raymond plans to invest Rs 1,400 crore in Amravati plant

Raymond, Indian textiles and apparel major, has decided to invest Rs...

Interviews View All

Varinder Singh Jawanda
Trendy Bharat

Sizing and fitting issues are inherent problems for companies expanding...

Akash Khetan
Narayan Tex Fab

I find it hard to find professionals in Surat

Claudia Kersten
Global Organic Textile Standard

‘GOTS is a very efficient supply chain management tool, especially for...

Silke Brand-Kirsch
Schlegel und Partner

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

Urs Stalder
Sanitized AG

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

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Pranav Mishra
Huemn

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

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

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