Non-leather exporters to get 4% extra incentive

Non-leather shoe and bag exporters will get an additional four percent cash incentive alongside the existing 15 percent for exporting their products to the Euro region, a Bangladesh Bank circular said on Tuesday.

Exporters can avail this additional incentive against their exported goods shipped from July 2019.

This benefit will be applicable to those exporters who will import raw materials under the duty draw-back or bonded warehouse facilities.  

Earlier, the government had declared a 15 percent cash incentive on the export of shoes and bags made by synthetic and fabrics in 2017-18 fiscal year.

To avail the additional incentive for exports which have already been shipped in this fiscal year, exporters have to apply within 45 days of the issuance of this notice, says the circular.

Engineer M Abu Taher, chairman of Fortuna Bangladesh Limited, a leading footwear manufacturing company, told The Business Standard, "This conditional four percent incentive will not be fruitful for the sector. This is not enough."

This sector badly needs refinancing facilities, he opined.