Corporate tax for the readymade garments units will be hiked to 15 per cent, what Finance Minister AMA Muhith has proposed in his budget for fiscal 2018-19 today.
It is a 3 per cent hike from what it was from the revised budget of 2017-18.
Muhith proposed corporate tax for the non-listed garment sector at 15 percent from the revised rate of 12 percent. The minister also proposed 2 percent increased corporate tax rate for the green garment factories at 12 percent from the revised rate of 10 percent.
Muhith proposed 12.5 percent corporate tax for the publicly listed garment companies on the stock market.
In Bangladesh, although, there are nearly 5,500 garment factories, but very few companies are listed on the stock market. Muhith also hinted exemption of VAT on textile and export sector, but he did not elaborate it in his speech.
He also proposed 100 percent duty exemption for export oriented textile raw materials. The minister expanded such exemption also on import of textile raw materials like flax fibre and flax tow.