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

Courtesy: Christian Dior

Fashion | On 25th Apr 2017

LVMH to acquire Christian Dior Couture for €6.5bn

LVMH and Christian Dior, which holds directly and indirectly 41 per...

Information Technology | On 25th Apr 2017

Self-repairing fabrics to be the future of fashion

It is the era of smart. Intelligent materials like self-repairing...

Textiles | On 25th Apr 2017

Indonesia revitalising textile sector

With exports of textile and textile products rising in Indonesia, the ...

Interviews View All

Nuno Venda
ROQ

‘There has been an increase in demand for water based inks, rather than...

Rahul Bhadani
Looksgud

Navigating through catalogues is a bit hasslesome

Vasanth Kumar
Max Fashion India

‘Traditional high-street retailers are now willing to offer franchisees to ...

Kerem Durdag
Biovation II LLC

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

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Wendell Rodricks
Wendell Rodricks

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

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Pranav Mishra
Huemn

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

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
April 2017

April 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