Garment or non-garment -- same tax rates for all export industries
The government has proposed a uniform tax rate on the earnings of the services export and goods with a view to encouraging diversification of export goods and ensuring a level-playing field for all other sectors exporting goods and services.
Like garments, export-oriented green factories in other sectors will have to pay 10 percent income tax, while non-green factories will pay 12 percent. The earnings from the services export will also enjoy the same tax rates, as per the proposal of the finance minister in his budget speech.
For all latest news, follow The Daily Star's Google News channel. Currently, only the export-oriented green garment factories pay 10 percent income tax and non-green apparel factories pay 12 percent.
There has been a long-standing demand from the business community for eliminating the discrimination in tax rates between garment and non-garment factories.
The minister also proposed exempting the income earned in foreign exchange by oceangoing vessels carrying Bangladeshi flag from paying tax until 2030 provided the income is brought to Bangladesh through the banking channel.
"By adopting these proposals, we will be able to establish service export as a potential export industry for earning foreign currency for the country," Kamal said.
"Initiatives should be taken to create new export sectors, diversify goods and search for new export markets so that 'Made in Bangladesh' can be made a global brand," he said, adding that services export should be given due priority alongside goods export.
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