RMG sector gets Tk 2,825 cr incentive
An allocation of additional Tk 2,825 crore will be made for readymade garments (RMG) sector in the proposed budget for the FY2019-20.
The country’s main export sector has been given the highest 5 percent export incentive.
Currently, four sectors of ready-made garments are receiving export incentives at 4 percent. In the new budget, an export incentive of 1 percent in the next fiscal year for the rest of the sectors of ready-made garments has been proposed.
Besides, the existing tax rates for the readymade garments sector is remaining the same, which the manufacturers had wanted to be lowered down.
Currently, the tax rate for RMG is 12 percent while the rate is 10 percent if there is green building certification. Besides, for textile sector, the tax rate is 15 percent.