Bangladesh’s National Board of Revenue (NBR) chairman Mohammad Abdur Rahman Khan recently said the reduced corporate tax rates of 10-12 per cent being imposed on the readymade garment (RMG) sector now may not last longer.

Addressing a pre-budget meeting with stakeholders, he indicated a gradual return to the standard corporate tax rate of about 27.5 per cent.

Bangladesh’s National Board of Revenue has said the reduced corporate tax rates of 10-12 per cent being imposed on the RMG sector now may not last longer.
At a pre-budget meeting with stakeholders, it indicated a gradual return to the standard 27.5-per cent rate.
AmCham Bangladesh proposed rationalising the 1-per cent minimum tax on annual turnover and lowering tax rates for offshore banking units.

Export-oriented knitwear and woven garment manufacturers, along with green-certified factories, enjoy lower corporate tax rates of 10 per cent and 12?per cent respectively. These incentives are designed to boost exports and encourage sustainable industrial practices.

Exporters already enjoy a 50-per cent income tax exemption on export earnings, which reduces their actual tax burden to a great extent, he was cited as saying by domestic media outlets.

Women Entrepreneurs Network for Development Association (WEND) president Nadia Binte Amin suggested equalising corporate tax rates and reducing the 1-per cent tax deducted at source (TDS) on export earnings for fully women-owned businesses.

She also proposed a 10-per cent tax rebate for companies investing in research and development, innovation, training and sustainable development.

The American Chamber of Commerce in Bangladesh (AmCham) proposed rationalising the current 1-per cent minimum tax on annual turnover. It also suggested maintaining a level-playing field in the banking sector by applying a uniform 37.5-per cent tax rate to both foreign and local commercial banks.

It also recommended lower tax rates for offshore banking units, similar to other Asia-Pacific countries, where rates range from 0 to 20 per cent.

Other proposals included simplifying procedures under Double Taxation Avoidance Agreements, speeding up certification processes, introducing a standard foreign currency conversion method in line with international practices, and rationalising withholding tax rates.

Fibre2Fashion News Desk (DS)

India**;s partially oriented yarn (POY) manufacturing sector has significantly scaled back production, with plant utilisation rates falling to approximately ** per cent of installed capacity. The pullback is not demand-led; rather, it is a direct consequence of extraordinary inflationary pressure in petrochemical feedstocks, compounded by supply chain uncertainty stemming from ongoing geopolitical tensions across West Asia.

Within the first week of March ****, prices of the three core inputs for POY production purified terephthalic acid (PTA), monoethylene glycol (MEG), and paraxylene (PX) rose sharply and simultaneously, catching yarn producers with limited room to adjust. The aggregate cost of the raw material basket climbed by an estimated ** to ** percent in under a month, an extraordinary pace of inflation by any historical measure in this sector.