Apparel industry stakeholders today urged the National Board of Revenue (NBR) to retain the existing corporate tax rates for the readymade garment sector in the upcoming budget.

Inamul Haq Khan, a member of the support committee at the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), made the call during a pre-budget meeting with the NBR at its headquarters in Agargaon, Dhaka.

Currently, the corporate tax is 12 percent for export-oriented garment factories and 10 percent for green factories. These rates will remain effective until June 30, 2028.

"Changing the corporate tax rate will erode the confidence of local and foreign entrepreneurs and go against the spirit of the recently concluded investment summit," Khan said.

In response, NBR Chairman Abdur Rahman Khan reiterated the board's commitment to eliminating discriminatory tax practices and reducing exemptions.

"We want to move away from the ad hoc exemptions granted over the years," he said. "If there is consensus, we're ready to implement that."

He noted that tax expenditures, including reduced rates and various exemptions, remain a challenge.

"We must address these. This is a crucial moment when people across the country are standing against all forms of discrimination," he added.

"It's essential to make tax rates as uniform as possible so that no group is treated differently."

Khan also pointed out the need to raise revenue, given the country's low tax-to-GDP ratio of around 7 percent and growing fiscal deficit. "If we don't boost revenue, we won't be able to sustain this trend," he said.

At the meeting, the SME Foundation proposed allowing quarterly VAT return submissions for SMEs with an annual turnover of up to Tk 5 crore.

It also sought a 10-year tax holiday for leather, leather goods, garment accessories, and backward linkage industries.

Separately, the Bangladesh Society for the Change and Advocacy Nexus (B-SCAN), a volunteer organisation, urged the NBR to raise the tax-free income threshold for persons with disabilities to Tk 6 lakh from the existing Tk 4.75 lakh. 
It also demanded raising their monthly allowance to Tk 5,000, depending on the type of disability, and suggested increasing taxes on tobacco products to offset the cost.