Apparel sector entitled to export, other incentives

The country's readymade garment sector will continue to receive the 1.0 per cent additional export incentive along with other facilities in the next fiscal year.

Announcing this in his budget speech on Thursday, Finance Minister AHM Mustafa Kamal attributed the sector's success in coping with effects of the pandemic to the stimulus package the government started offering to the textile and RMG industry from fiscal year 2019-20 and has continued in the current fiscal year.

"For this reason, I am proposing to continue this additional export incentive at the rate of 1.0 per cent in the next financial year as well," he said.

The exiting rate of corporate tax at 10 per cent and 12 per cent for green RMG factory and 0.5 per cent tax at source would also remain unchanged for the sector, added the minister.

He also proposed inclusion of photosensitive rotary screen, temperature sensor and loaded PCB in the concessionary rate to protect the textile industry.

According to the proposal, the value added tax and supplementary duty for these items would be 1.0 per cent.

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