National Board of Revenue (NBR) yesterday reduced the tax at source on all readymade garments products from 0.80% to 0.30%, which will be applicable till June 2015, officials said.
They said export oriented RMG products, particularly exports of knitwear and woven garments, terry towel, carton and accessories of garments will have to pay 0.30% tax from the export proceeds as per the NBR decision.
Export oriented products, other than apparel items, are now subject to pay 0.60% tax at source on export proceeds, which was earlier 0.80%.
The NBR published a Statutory Regulatory Order (SRO) yesterday.
The government has taken the decision as a special incentive to the RMG exporters, who failed to do businesses and incurred heavy losses during the political unrest before the January 5 polls, officials said.
They said the decision would cause a revenue loss of around Tk2,000 crore for the national exchequer.
