• Friday, Jul 30, 2021
  • Last Update : 08:26 pm

Apparel sector gets 1% cash incentive

  • Published at 08:03 pm June 13th, 2019
web-rmg-worker-women
File photo of Female workers seen working at RMG factory in Bangladesh Rajib Dhar/Dhaka Tribune

In the current fiscal year, only exports to non-traditional markets enjoy 4% cash incentive

In the proposed budget for fiscal year 2019-20, the government has planned to provide 1% cash incentive against export of apparel goods to traditional export destinations and allocated Tk2,825 crore for the sector. 

Currently, apparel exporters enjoy 4% cash incentives against exports to non-traditional destinations. 

“We have acquired the second position in the world in exporting ready-made garments (RMG). In the present context of international trade, it is considered as a growing and promising sector," Prime Minister Sheikh Hasina said, while reading from the budget speech in the parliament on Thursday. 

Keeping this in mind, the government has kept on providing all types of facilities, including existing incentives to the sector, said Hasina. 

The prime minister read out the speech as Finance Minister AHM Mustafa Kamal had fallen sick during his maiden budget presentation.

Currently, four RMG sectors are receiving export incentives at 4%.

"I am proposing to provide 1% export incentive from the next fiscal to the ready-made garments sector. An allocation of additional Tk2,825 crore will be provisioned in this regard," she said. 

Exporters welcome the proposed budget

Welcoming the government's proposed budget, people involved with the apparel sector said the incentives for traditional markets will help boost the export market. 

Exports to non-traditional markets contribute only 15.85% to the total apparel export earnings, while the rest comes from the traditional market. 

“In the budget proposal, we demanded a 5% cash incentive against exports to all markets, but the government has given 1% or Tk2,825 crore,” BGMEA President Rubana Huq told Dhaka Tribune.

“Although the amount is much less than what we demanded, it would play an important role,” said Rubana. 

She also urged the government to continue its support as the sector is going through a critical time, and losing its competitive edge in the global export market. 

Corporate tax for apparel sector unchanged

Meanwhile, the government has also kept corporate tax for the apparel sector unchanged at 12%. The tax rate will be 10%, if there is green building certification. As for the textile sector, the tax rate is 15%.

Considering the contribution of the sectors to the country's economy, particularly in boosting exports and generating employment opportunities, the prime minister proposed to continue the provision of reduced tax rates for them.

Meanwhile, tax at source for the apparel sector will remain unchanged at 0.25% for the next fiscal.

53
Facebook 50
blogger sharing button blogger
buffer sharing button buffer
diaspora sharing button diaspora
digg sharing button digg
douban sharing button douban
email sharing button email
evernote sharing button evernote
flipboard sharing button flipboard
pocket sharing button getpocket
github sharing button github
gmail sharing button gmail
googlebookmarks sharing button googlebookmarks
hackernews sharing button hackernews
instapaper sharing button instapaper
line sharing button line
linkedin sharing button linkedin
livejournal sharing button livejournal
mailru sharing button mailru
medium sharing button medium
meneame sharing button meneame
messenger sharing button messenger
odnoklassniki sharing button odnoklassniki
pinterest sharing button pinterest
print sharing button print
qzone sharing button qzone
reddit sharing button reddit
refind sharing button refind
renren sharing button renren
skype sharing button skype
snapchat sharing button snapchat
surfingbird sharing button surfingbird
telegram sharing button telegram
tumblr sharing button tumblr
twitter sharing button twitter
vk sharing button vk
wechat sharing button wechat
weibo sharing button weibo
whatsapp sharing button whatsapp
wordpress sharing button wordpress
xing sharing button xing
yahoomail sharing button yahoomail