Bangladesh: Gov­ern­ment low­ers Cor­po­rate Tax for RMG sec­tor to 12%; re­tains Tax at Source 1%

Stitch World - - NEWS TRACK -

In what may be termed as some re­prieve to the ready­made gar­ment man­u­fac­tur­ers of Bangladesh, the Gov­ern­ment has low­ered the Cor­po­rate Tax to 12 per cent from 15 per cent, as was pro­posed in the Bud­get placed be­fore the Par­lia­ment on June 1. How­ever, Tax at Source of 1 per cent on ex­port earn­ings from ready­made gar­ment in­dus­try has been re­tained.

Fi­nance Min­is­ter Abul Maal Ab­dul Muhith in his fi­nal Bud­get speech said that the gar­ment ex­porters would have to pay 1 per cent Tax at Source in the new fis­cal year. The rate is sup­posed to be 1 per cent in FY 2017-18 after ex­porters paid the tax at the rate of 0.7 per cent in FY’17 as the Na­tional Board of Rev­enue re­duced the rate for the year through a spe­cial statu­tory reg­u­la­tory or­der.

The rate of Cor­po­rate Tax for Green fac­to­ries has also been re­duced to 10 per cent from the pro­posed 14 per cent. The Par­lia­ment of Bangladesh had passed the Fi­nance Bill-2017 re­cently, in­cor­po­rat­ing some changes, in­clud­ing those re­lated to Value-Added Tax, In­come Tax and Cus­toms Duty.

It may be men­tioned here that in FY 2016-17, the rate of Cor­po­rate Tax for the gar­ment sec­tor was 20 per cent, which the Fi­nance Min­is­ter in the pro­posed Bud­get re­duced to 15 per cent be­fore cut­ting fur­ther to set­tle at 12 per cent.

The cor­po­rate tax for RMG sec­tor in Bangladesh which was ear­lier rated at 20 per cent, has now re­duced to 12 per cent.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.