Bangladesh assures 5% cash incentive to apparel exporters

January 03, 2017 - Bangladesh

Bangladesh finance minister Abdul Muhith has assured garment exporters that the government would favourably look at their demand for an additional five per cent cash incentive, by relaxing a previous condition. As per the condition, an exporting unit qualified to receive the additional incentive, only if it exported worth more than $3.5 million per year.

Following the assurance by the finance minister, readymade garment exporters are likely to get 10 per cent cash incentive instead of 5 per cent they are getting currently.

The demand was earlier made by the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) and Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the assurance was given to a delegation from the two trade bodies.

Additionally, the minister also gave a positive response to another demand of charging flat energy rates instead of the increased rates in the peak hours, until improvement in the power situation. (AR)