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BGAPMEA calls for a reduction of corporate tax rate to 12%

Bangladesh Garment Accessories and Packaging Manufacturers and Exporters Association (BGAPMEA) has urged the government to reduce the corporate tax rate from 35 per cent to 12 per cent. This will boost exports, and attract new investments.”

In the national export policy, direct and indirect exporters are entitled to enjoy the same benefits but in the proposed budget for the FY2019-20, the corporate tax for the garment accessories sector remains at 35 per cent despite its contribution to apparel export. The knitwear and woven products exporters are paying 12 per cent corporate tax which is 10 per cent for certified green factory owners and 15 per cent for the textile industry.

Meanwhile, the accessories makers have also urged the government to keep the tax at source rate 0.25 per cent. In the outgoing budget, the government set tax at source at 1 per cent, which was lowered to 0.25 per cent in response to the sector people’s demand, which will expire on June 30, 2019. As the government did not propose the existing rate in the budget, the apparel makers have to pay 1 per cent source tax from the next fiscal.