The Bangladesh readymade garments industry has received the highest cash incentive of 5 per cent in the budget for fiscal 2019-20. While four RMG sectors get a 4 per cent cash incentive for exports to non-traditional markets, a generalised 1 per cent has been proposed for all.

Finance Minister AHM Mustafa Kamal has proposed an export incentive of 1 percent in the next fiscal to the rest of the sectors of ready-made garments. Now, exports to traditional markets will fetch a cash incentive of 1 per cent, and to non-traditional markets will earn an incentive of 5 per cent.

The existing tax rates for the readymade garments sector will remain the same. Currently RMG in Bangladesh are taxed at 12 per cent. The rate is 10 per cent in case of a green building certification , while for the textile sector it is 15 per cent.

The tax rates have been unchanged as these sectors have boosted the exports considerably besides generating lot of employment in the country.