Exporters of the readymade garment products have demanded that the government should give one per cent cash incentive for export of all types of RMG items, leaders of the apparel exporters associations said. The finance ministry early this month decided to provide cash incentive at the rate of 0.25 per cent on the freight on board value of export of all types of RMG items.At a meeting with Bangladesh Garment Manufacturers and Exporters Association and Bangladesh Knitwear Manufacturers and Exporters Association leaders held at secretariat, finance minister Abul Maal Abdul Muhith offered the 0.25 per cent cash incentive for one and half years, BKMEA vice-president Mohammad Hatem told New Age.
Replying to the proposal, RMG sector leaders requested the minister for providing the facility, even if for one year, but the rate should be one per cent, he said.
He said that 0.25 per cent cash incentive would not be sufficient to compensate the loss they were suffering due to political unrest and pay-hike.
BGMEA vice-president Shahidullah Azim said that cash incentive at 0.25 per cent would be very insignificant compared with the rise in operational cost of business including salary hike of workers and fall in export value of products.
Under these circumstances, we have demanded that the government increases the rate of cash incentive to one per cent from 0.25 per cent, he said.
Currently, only some sub-sectors of RMG are getting cash incentive for export.
The BGMEA has earlier written a letter to the finance minister in this connection.
In the letter, the BGMEA said that in the last two years cost of business operation in the RMG sector increased by 13 per cent due to pay hike, devaluation of the dollar against the taka, fall in price of products in the international market and political unrest in the country.
Now, exporters get 2 per cent incentive for textile products for expanding into new markets and exporting new products in countries other than US, Canada and European Union while exporters from small and medium industries in textiles sector will get an additional incentive of 5 per cent along with the regular incentive.
On the other hand, export-oriented local textile sector also get 5 per cent cash incentive as an alternative to duty bonds and duty drawbacks.
-With New Age input
