Bangladesh signals RMG tax concessions may end in 2026–27, with NBR suggesting current reduced rates for exporters might not continue.

RF Report

Bangladesh’s National Board of Revenue (NBR) has signalled that the reduced corporate tax rates for ready-made garment (RMG) exporters may be discontinued in the 2026–27 fiscal year.

NBR Chairman Abdur Rahman Khan made the remark during a pre-budget consultation on 5 April 2026 at the revenue building in Dhaka’s Agargaon.

Currently, RMG exporters pay corporate tax at 10% for green factories and 12% for other units, while the standard rate for the sector ranges from 25% to 27%. These concessional rates have benefited the sector for years, although last year’s budget moved to align textile sector rates more closely with the standard corporate tax.

The consultation also included proposals from business chambers and industry representatives. Nadia Binte Amin, president of the Women Entrepreneurs Network for Development Association, called for extending similar tax concessions to women-led businesses. In response, the NBR chairman reiterated that the current reduced rates for RMG exporters “may not remain.”