Bangladesh RMG makers demand purging of source tax

Bangladesh Finance Minister AMA Muhith in the proposed budget for FY2018 has proposed to cut corporate tax to 15 percent from 20 percent for the RMG sector, but the minister did not mention the rate of tax at resource in his budget speech.

Apparel makers reiterate their demand for withdrawal of tax at source for the next two years to overcome the ongoing critical situation. The industry people also urged the government to increase the export incentive to 5 percent instead of existing 3 percent for the next five years.

At present, RMG makers are paying 0.70% tax at source. In the current fiscal year, the government proposed 1% tax at source for the apparel industry. Later, it was reduced to 0.70% through a circular, which would expire on June 30 this year.

As a result, the clothing industry is likely to fall under the category of 1% tax at source after the time frame.

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) president Md Siddiqur Rahman at a press briefing in his reaction to the proposed budget for the Fiscal Year 2017-18 said that as of now, the proposed budget is not friendly to the country’s RMG sector. Considering the contribution of the RMG sector, the government have been urged to re-evaluate their demand.

Recent Posts

Yanpai orders needlepunch lines from Andritz

Zhejiang Yanpai Filter Technology has placed a new order with Andritz for two additional high-performance needlepunch production lines.

3 days ago

Chinese textile group Sunrise to invest in Morocco

Sunrise has started building a textile factory in Morocco through its newly formed subsidiary, Euwen Textiles. Construction has begun in…

3 days ago

Tendam, UDIT study carbon impact of fashion e-commerce

Tendam, in partnership with the University of Design, Innovation and Technology, has released a new study examining the carbon footprint…

4 days ago

Mycelium-based insulation emerges as solution for fast-fashion waste

Researchers from Latvia have identified mycelium-based insulation as the most promising reuse option for fast-fashion textile waste.

4 days ago

Researchers turn PET waste into anti-cancer medicines

A breakthrough has revealed a new way to convert PET from plastic bottles and synthetic textiles into key components used…

4 days ago

India–New Zealand FTA to boost Indian textile exports

The proposed India–New Zealand Free Trade Agreement (FTA) is expected to significantly strengthen Indian exports.

5 days ago