The readymade garments industry contributes over 13% to the GDP of Bangladesh and more than 82% to overall export earnings, and yet RMG manufacturers are nowhere to be found on the latest list of the highest taxpayers in the country. Other representatives of the $28 billion RMG sector blamed the system and cumbersome process of handling taxes issues. “Despite paying taxes in line with the income, tax files of the RMG manufacturers are not settled in time. “RMG manufacturers do their business based on imports and exports and so their value addition is less,” he added. Currently, RMG manufacturers pay only 20% corporate tax, compared to a rate of up to 42% for other business groups.

Source: Dhaka Tribune May 31, 2017 20:03 UTC