The government has proposed retaining the existing 15 per cent tax rate for the textile sector until June 30, 2025 to facilitate the growth of the country's textile and garment sector.
An existing statutory regulatory order to this effect expires on June 30, 2022.
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"I propose to extend this facility until June 30, 2025. I believe the valued taxpayers will take advantage of this long-term preferential tax benefit and will feel encouraged to pay their due taxes," Finance Minister AHM Mustafa Kamal proposed in the budget today.
Globally, Bangladesh is the second largest exporter of garments.
The tax policy of the government provided support in making this industry competitive internationally.
In order to retain this achievement and to attain revenue targets of this sector, the incentives granted to the textile sector need to continue, said the minister.