The proposed rise in corporate tax for the Bangladeshi Garment sector is likely to hurt the flow of fresh investment as entrepreneurs will feel discouraged to inject fresh funds.

Finance Minister AMA Muhith had earlier proposed rising the corporate tax rate for the garment sector to 12 per cent from the earlier

As per Muhith's plan, the corporate tax for non-listed garment makers will be 15 percent in the next fiscal year from 12 percent now. He also raised the rate for green garment factories to 12 percent from 10 percent.

The minister, for the first time, imposed a 12.5 percent corporate tax on the listed garment companies.

There are about 5,500 garment factories in Bangladesh, but only a handful of them are listed on the stockmarket.