Bangladesh’s apparel makers seek release of cash subsidy

Dhaka, Bangladesh (BBN) – The country’s apparel makers have sought cash incentive to be released by July 10 for clearing wages and allowances of their worker before the upcoming Eid-ul-Fitr festival, officials said.

A large number of applications from exporters have already been submitted to the Bangladesh Bank (BB), the country’s central bank, seeking BDT 9.0 billion cash subsidy.

A good number of apparel makers may face difficulties in paying wages and allowances to their workers if the government does not release committed cash incentive on time before the Eid festival.

Under the exiting provisions, Bangladesh’s apparel and clothing sector gets 5.0 percent cash incentive as an alternative to duty bonds and duty drawbacks.

The government has increased the cash incentive to 3.0 percent from 2.0 percent for export of new textile products and expanding export of textile items to new markets other than the US, Canada and the European Union for fiscal year 2014-15 to minimize their loss caused by the political unrest in the last year.

BBN/SSR/AD-09July14-2:06 pm (BST)

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