Exporters Association of Bangladesh has urged the government to pay cash incentive on a monthly basis instead of quarterly to overcome the adverse situation the exporters might face due to prolonged political unrest. Besides, EAB, a newly formed association of exporters, placed more than a dozen of other demands including lowering tax on export bills to 0.25 pert cent, additional 3 per cent cash incentive for exports for three years and additional Tk 3 with exchange rate of Taka against the US Dollar.
Its president, Salam Murshedi, urged the finance minister for incentives in a letter last week saying the exports of apparel, leather, jute and frozen food slowed down because of frequent general strikes and blockades for the last several months.
Murshedi, also former president of Bangladesh Garment Manufacturers and Exporters Association, told New Age on Monday that production of export-oriented units declined at least 10 per cent nowadays.
Despite slowing down in business activities claimed by the businessmen the country’s export earnings in November grew by 25.34 per cent to $2.21 billion from $1.76 billion one year ago.
Murshedi said the adverse impact of the lingering political unrest will emerge in February-March.
Critics said pressuring the successive governments for additional incentives was a common practice by the businessmen who forecast that the readymade garment exports would fall drastically due to phase out of quota facility Bangladesh enjoyed from the developed countries till 2004.
But there was little impact on the country’s RMG exports. The shipment of apparels grew $6.4 billion in 2005-06 from $ 5.6 billion in 2004-05 and doubled in less than five years despite abolishing of quota facility.
A senior ministry official said finance minister AMA Muhith had instructed them to scrutinise the EAB demands which were almost similar to the demand of the apparel exporters.
Leaders of Bangladesh Garment Manufacturers and Exporters Association, Bangladesh Knitwear Manufacturers and Exporters Association and Bangladesh Textile Mills Association held a meeting with Muhith last month and appealed for a stimulus.
-With New Age input
