RMG gets 5pc cash incentive in FY20


13th June, 2019 06:15:19 printer

RMG gets 5pc cash incentive in FY20

Country’s main export sector, readymade garments (RMG) industry has been given the highest 5 percent export incentive in the proposed budget for fiscal 2019-20.

To this end, an allocation of additional Taka 2,825 crore will be made in the new budget.

In the current context of global trade, RMG is considered a growing and promising sector. Keeping this in mind, the government has kept on providing all types of facilities to this sector, including the existing incentives.

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.