Aiming to foster the growth of readymade garment (RMG) sector, Finance Minister Abul Maal Abdul Muhith has proposed to reduce tax to 20 per cent from existing 35 per cent for the garment industry, effective from July 1, during his budget speech at Jatiya Sangsad recently.
“As part of our continued support, I propose to reduce the tax rate of the RMG sector from 35 per cent to 20 per cent,” Muhith said adding the RMG sector is one of the main exporting sectors of Bangladesh and is making important contribution to the GDP growth and employment generation in the country.
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Meanwhile, expressing displeasure at the unchanged tax at source, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) reportedly claimed that the budget has failed to safeguard the readymade garment sector’s interests.
“I can’t tell you at this moment how the budget has been. But our sector has been harmed,” reportedly maintained BGMEA President Siddiqur Rahman, adding, “The tax at source has not been cut despite so many challenges. The RMG industry will collapse if this continues.”
It may be mentioned here that earlier in a pre-budget meeting, chaired by NBR Chairman Md. Nojibur Rahman at the revenue bureau headquarters on April 19, BGMEA along with Bangladesh Garments Accessories and Packaging Manufacturers and Exporters Association (BGAPMEA), Bangladesh Jute Goods Exporters Association and other stakeholders made a please to reduce tax at source to 0.3 per cent from the current 0.6 per cent on export of apparel products.
Also Read – B’desh garment makers want tax at source cut to 0.3%
Representing the garment exporters, BGMEA President asked the tax authority to provide the facility for at least the next three years, hoping this would enable the RMG sector to bring about the much-needed change in the industry.
Bharat Tex Special Report 2026 
