Bangladesh extends tax sops for jute goods manufacturers till FY26

12 Nov '23

1 min read

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Insights

Bangladesh's National Board of Revenue recently extended tax benefits for jute product firms, which will enjoy the reduced tax rate of 10 per cent until fiscal 2025-26.
Individuals involved in jute goods production will also receive the benefit.
The benefit for such firms had expired on June 30 and they had requested NBR to continue the benefit until 2030.

Bangladesh’s National Board of Revenue (NBR) recently extended tax benefits for jute product manufacturing companies for three years. Jute product manufacturers will enjoy the reduced tax rate of 10 per cent until fiscal 2025-26, according to an NBR notification.

Apart from the mills, individuals involved in the production of jute products will also be eligible for the benefit.

The tax benefit for such companies had expired on June 30 and they had requested NBR to continue the benefit until 2030.

The September request by the Bangladesh Jute Mills Association (BJMA) noted a consistent decline in jute and jute goods export amid declining demand in major destinations.

During July-October period of this fiscal, the country’s jute and jute goods exports fell 11 percent year on year to $289.70 million, Export Promotion Bureau data showed.

Both BJMA and the Bangladesh Jute Diversified Products Manufacturers and Exporters Association welcomed the decision that is expected to offer some relief to the jute sector, according to domestic media reports.

Out of 300 jute mills in the country, only around 120 are reportedly operational now.

Fibre2Fashion News Desk (DS)

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