NBR signals possible withdrawal of reduced tax rates for RMG exporters
In contrast, the standard corporate tax rate for the sector ranges between 25% and 27%.
The existing reduced corporate tax rates for ready-made garment (RMG) exporters may be discontinued in the upcoming fiscal year 2026-27, National Board of Revenue Chairman Abdur Rahman Khan has said.
Speaking at a pre-budget consultation held today (5 April) at the revenue building in Dhaka's Agargaon, he said, "This rate may not remain," in response to calls for extending similar tax benefits to other sectors.
During the discussion, Nadia Binte Amin, president of Women Entrepreneurs Network for Development Association, noted that some sectors are currently paying corporate tax at reduced rates of 10 to 12%. She urged the authorities to allow women entrepreneurs to avail themselves of similar concessions.
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In reply, the NBR chairman said that the existing reduced rates might not continue.
At present, RMG exporters in Bangladesh pay corporate tax on total income at 10% for green factories and 12% for other units. In contrast, the standard corporate tax rate for the sector ranges between 25% and 27%.
For years, entrepreneurs in the garment sector have benefited from these concessional rates. However, in the previous national budget, the NBR moved to align the reduced tax rate for the textile sector with the standard rate.
The meeting was attended by representatives from several business chambers, including the American Chamber of Commerce in Bangladesh, EuroCham Bangladesh, India-Bangladesh Chamber of Commerce and Industry, and the Bangladesh-China Chamber of Commerce and Industries, among others, who presented their proposals ahead of the upcoming budget.
