Green RMG manufacturers to enjoy 1% corporate tax cut

Green RMG factory owners are going to enjoy 1% cut in corporate tax from the next fiscal year 2017-18.

For the next fiscal, the government has proposed to reduce the corporate tax to 15% from 20% for the apparel sector. It also proposed 14% corporate tax for green RMG factories.

Finance Minister AMA Muhith made the proposal while presenting the budget for Fiscal Year 2017-18 in the parliament on Thursday.

Muhith said: “In order to keep the earth habitable for our next generation, we need to ensure both sustainable development and the conservation of our environment.”

“We plan to integrate the environmental issues in our tax policy. In line with that, I propose to reduce the tax rate of RMG companies to 14% – if their factories are internationally recognised with green building certification,” the minister said.

He added: “Withholding tax rate on ready-made garments export is currently 0.70%, and companies are enjoying reduced corporate tax rate of 20%. I propose to reduce the corporate tax rate to 15% for this sector.”

According to Bangladesh Garment Manufacturers and Exporters Association (BGMEA), since 2011, a total of 67 Bangladeshi RMG factories have received Leadership in Energy and Environmental Design (LEED) certification from the US Green Building Council (USGBC), one of the top green building rating systems in the world.

Of the 67 factories, 13 have been rated platinum, 20 gold and five silver. At least 222 more factories have been registered with the USGBC for the LEED certification.