Bangladesh govt plans highest 5% cash incentive for apparel
Finance Minister AHM Mustafa Kamal placing the budget speech before parliament on June 13, 2019. Photo Courtesy: PID
Dominating export sector of Bangladesh, the apparel industry is getting a highest cash incentive of 5 per cent in the budget for fiscal 2019-20.
Whereas now only four sectors of RMG are getting 4 per cent cash incentive for exports to non-traditional markets, a generalised 1 per cent has been proposed for all.
Finance Minister AHM Mustafa Kamal today proposed to provide an export incentive of 1 percent in the next fiscal to the rest of the sectors of ready-made garments.
Now, effectively, exports to traditional markets will fetch a cash incentive of 1 per cent, and to non-traditional markets will earn an incentive of 5 per cent.
An allocation of additional Tk. 2,825 crore will be made in the budget for FY2019-20 for this purpose, the finance minister said in his budget speech.
Mentionable, apparel manufacturers and exporters had demanded 5 per cent flat cash incentive for the industry – applicable for all exporters.
NO CHANGE IN TAX RATES
The existing tax rates for the readymade garments sector is staying same, what the manufacturers had wanted to be lowered down.
Currently, the tax rate for readymade garments is 12%. The rate is 10% if there is green building certification. Besides, for textile sector tax rate is 15%.
The unchanged tax rates have been kept “considering the contribution of these sectors,” particularly in boosting export and generating employment.
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