15 June 2016
BANGLADESH: Corporate Tax Rate for Clothing Manufacturers Set for Cut to 20%
Current budget proposals recommend that Bangladesh reduce its corporate tax rate for readymade garment (RMG) production from 35% to 20%. If adopted, the revised tax rate will come into effect from 1 July.
The proposed tax cut is part of the government’s latest attempt to boost the country’s export oriented garment sector. There are, however, calls for the government to do still more, with the Bangladesh Garment Manufacturers and Exporters Association urging that the relevant corporate tax rate be cut to 10%.
Bangladesh is the world’s second largest RMG exporter after China. In 2015, the country’s RMG exports were valued at US$26.6 billion.