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Budget FY19: RMG tax up to 15% from 12%

  • Published at 01:30 pm June 7th, 2018
  • Last updated at 01:31 pm June 7th, 2018
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File photo of a ready-made garments factory in Dhaka, BangladeshMehedi Hasan/Dhaka Tribune

Apparel makers which have certified green factories or are publicly traded will enjoy special benefits

Apparel manufacturers will have to pay higher corporate tax as the government has proposed a raise from 12% to 15% for the fiscal year 2018-19.

However, apparel makers with a certified green factory will enjoy 3% rebate and pay 12%, while publicly-traded RMG manufacturers will have to pay 12.5%

Finance Minister AMA Muhith made the proposal while presenting the budget at the parliament on Thursday. 

The ready-made garments (RMG) industry plays an important role in generating employment and fostering economic growth. Taking into consideration that fact, the RMG sector has been given special tax incentives, said Muhith. 

Currently, there are 67 certified green RMG factories in Bangladesh and a total of 50 apparel companies are listed with the Dhaka and Chittagong stock exchanges.