Dhaka, Bangladesh (BBN)- The government has set to provide more cash incentive to the ready-made garment (RMG) exporters to minimise their losses caused by the political unrest last year, officials said.
The ministry of finance will provide more cash incentive at the rate of 0.25 percent on the freight on board value of export of all types of RMG items through commercial banks, an official told BBN in Dhaka.
He also said the ministry has already sent a letter to the central bank with advising for taking necessary measures in this connecting.
“We’re working on the issue,” a senior official of the Bangladesh Bank (BB) told BBN without elaborating.
Currently, exporters from small and medium industries in textiles sector are getting cash incentive of 5.0 per cent while export-oriented local textile sector is receiving identical percentage of cash incentive against the use of local yarn, according to the exporters.
Besides, apparel exporters will get 3.0 percent cash incentive instead of the existing 2.0 percent for expanding their businesses to new markets and exporting new products to countries other than the United States, Canada and the European Union.
Such cash incentives will be effective from January 1 this year to June 30, 2014, the official noted.
The apparel sector, which accounts for about 80 percent of the country’s total export, has been under tremendous pressure since October following frequent spells of blockade and shutdown, enforced by the main opposition parties.
BBN/SSR/AD-14Apr14-11:08 pm (BST)