Manufacturing output in February rose 5% year on year, slower than the 5.9% rise posted in the same month last year
Garment makers get tax benefits in new budget
Garment companies are enjoying a reduced corporate tax rate of 20 percent, which will further be lowered to 15 percent.
Published : 1 June 2017, 10:11 AM
Updated : 1 June 2017, 10:19 AM
The garment sector is playing a vital role in the economic development and employment generation of the country, Finance Minister AMA Muhith said in parliament on Thursday justifying the tax cuts.
"This sector is under manifold pressure due to adversities in the international market and claiming cash incentives along with withdrawal of withholding tax."
"Considering the contribution of this sector in the economic growth and employment generation, we have been providing various incentives and tax benefits for them," he said.
The withholding tax rate on garment exports is currently 0.70 percent.
The government plans to integrate the issue of environment in tax policy. In line with that, Muhith has proposed to reduce the tax rate for garment makers to 14 percent if factories of such companies have internationally recognised green building certifications.
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