The garment sector is playing a vital role in the economic development and employment generation of the country, Finance Minister AMA Muhith said in parliament on Thursday justifying the tax cuts. "This sector is under manifold pressure due to adversities in the international market and claiming cash incentives along with withdrawal of withholding tax." "Considering the contribution of this sector in the economic growth and employment generation, we have been providing various incentives and tax benefits for them," he said. The withholding tax rate on garment exports is currently 0.70 percent. In line with that, Muhith has proposed to reduce the tax rate for garment makers to 14 percent if factories of such companies have internationally recognised green building certifications.

Source: bd News24 June 01, 2017 10:07 UTC