Ready-made garments (RMG) manufacturers in Bangladesh will henceforth have to pay a higher corporate tax as the government has proposed to raise the tax rate from 12 per cent to 15 per cent for the 2018-19 fiscal years.

However, certified green factory owners will enjoy a 3 per cent rebate and pay 12 per cent, while publicly traded RMG manufacturers will have to pay 12.5 per cent.

The apparel sector enjoys various incentives and tax benefits such as the current withholding tax rate of 0.7 per cent on RMG exports.

The industry plays an important role in generating employment and fostering economic growth. Taking this fact into consideration, the readymade garments sector has been given special tax incentives.

According to BGMEA sources, 67 Leadership in Energy and Environmental Design (LEED)-certified factories have been operating in Bangladesh. Among these, 13 have received platinum status, 20 gold status and 34 silver status.