Exports and remittances have shown a rise within one-and-a-half months of his government, the prime minister says
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."
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.