Jute goods makers' tax benefit extended

The National Board of Revenue (NBR) has extended reduced tax benefits for jute goods makers for three years until fiscal year (FY) 2025-26, according to a notification issued recently.

The tax administrator said the corporate tax rate for jute goods makers will be 10 percent -- almost one third of the 27.5 percent tax rate for non-listed companies -- for three years beginning from the current fiscal.

This is yet another extension for jute goods makers, who, like garment and textile millers, have been paying taxes lower than the corporate tax for the last several years.

The previous benefit expired in FY2022-23.

The NBR extended the privilege to jute goods makers following an appeal from the Bangladesh Jute Mills Association (BJMA) in September, which cited that jute and jute goods export has been falling consistently amid declining demand in major destinations.

During July-October period of the current FY 2023-24, jute and jute goods exports fell 11 percent year-on-year to $289.70 million, data by the Export Promotion Bureau showed.

Bapan Chandra Das, second secretary tax legal at the NBR, said it extended the benefit for jute goods makers to support the industry overcome the challenges it is facing in case of export.

"This will be helpful for the sector," said BJMA Secretary General Abdul Barik Khan.

Rashedul Karim Munna, president of Bangladesh Jute Diversified Products Manufacturers and Exporters Association, welcomed the tax cut and urged for taxpayer-friendly attitudes from the NBR's field officials.

It will encourage new investors if the NBR provides tax exemption for the first five years, he said.