RMG export tax slashed25 April 2014
The government has slashed by 0.5 percent tax at source for readymade garment (RMG) export to make up for loss incurred during last year's political turmoil.
Tax on other exports has been reduced by 0.2 percent.
The National Board of Revenue (NBR) announced the cuts on Wednesday, a day before the first anniversary of Bangladesh's worst industrial disaster that killed over 1,130 people, mostly RMG workers.
Bangladesh is the world's second largest RMG manufacturer after China. The sector contributes up to 80 percent to the country's export earnings.
However, the sector took a hit after the Apr 24, 2013 Rana Plaza collapse, coming close on the heels of the 2012 Tazreen Fashions Limited factory fire that killed over 110 workers.
Foreign buyers have been mounting pressure on the RMG factory owners to improve working condition at the factories and hike workers' wages.