The government has extended the duration for textile millers to enjoy a reduced 15% corporate tax for the next three fiscal years, Finance Minister AHM Mustafa Kamal said while presenting the proposed national budget for FY23.
He also said that the prevailing tax rate for the textile sector stood at 15%, and the statutory regulatory order (SRO) in this regard was supposed to expire by the end of this month.
Now, he proposed to extend this facility until June 30, 2025.
In his speech, he also said that globally Bangladesh has retained second position in export of readymade garments.
The tax policy of the government provided support in making this industry competitive internationally, Kamal also said.
In order to retain this achievement and to get expected revenue from this sector, the incentives granted to the textile sector need to continue, the minister also said.
“I believe the valued taxpayers will take advantage of this long-term preferential tax benefit and will feel the pursuit of rationalizing the prevailing tax rate for the private sector,” he added.
Sources at the Finance Ministry said that the spinning, yarn dyeing, finishing, coning, fabric dyeing, printing or any other such industries will also enjoy the benefit of tax rate retention.
However, the companies must be registered under the Companies Act, and comply with all conditions and provisions of that ordinance.
Moreover, if the factories have paid any penalty implied by any government authorities for violation of any environmental laws, rules, or regulations, the factories will be out of the purview of this benefit, and must pay regular tax for the respective fiscal year, a source also said.
