Incentives to lower revenue from RMG sector: CPD

Government incentives to apparel exporters is estimated to cause about Tk 500 crore lower revenue from the sector, said a CPD report published on Saturday.

CPD-GarmThe report, titled ‘Analytical Review on Bangladesh’s Macro-economic Performance in FY2013-14’, said, “The revenue foregone from reduction of advanced income tax (AIT) on apparel exports alone could be worth more than Tk. 500 crore.”

“The recently announced incentives to business may also result in somewhat lower tax collection,” said the report, “The government has decided to provide a number of fiscal incentives to exporters in view of helping them recover losses arising from the prolonged political turmoil at a time when minimum wages had seen a significant increase.”