Bangladesh’s garment industry may soon face higher corporate taxes, as the National Board of Revenue (NBR) is reportedly considering a proposal to raise rates in the upcoming fiscal year.
According to local reports, the standard corporate tax rate for apparel manufacturers could rise from the current 12% to 20%, while green-certified factories, which now enjoy a preferential 10% rate, may see it revised upward to 18%.
The move is part of the NBR’s broader agenda to enhance revenue collection and reduce discrepancies in corporate tax rates across various industries. Sources suggest that the proposal has yet to be finalized and will be reviewed by the finance adviser and the chief adviser before being implemented in the next national budget.
This potential shift is likely to impact the country’s thriving apparel export sector, which has long benefited from favorable tax structures to maintain global competitiveness. Industry stakeholders have raised concerns that the proposed tax hikes could strain profit margins and hamper the cost-effectiveness of Bangladeshi garments in international markets.
One of the key motivations behind this policy consideration appears to be pressure from the International Monetary Fund (IMF), which has been urging Bangladesh to streamline fiscal policies and widen its tax base as part of broader economic reforms.
As discussions progress, manufacturers and exporters are closely watching the government’s next steps, hoping for policies that balance national fiscal goals with continued support for the country’s largest export-earning sector.
