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An additional 1 per cent cash incentive against export of apparel items—along with the existing incentives—will continue into the next fiscal, Bangladesh finance minister AHM Mustafa Kamal proposed while presenting the budget for fiscal 2020-21 in parliament yesterday. With an outlay of Tk 603,681 crore, the proposed budget is about 17.4 per cent of the gross domestic product.
It is around 12 per cent higher than the revised budget of the current fiscal and 6.34 per cent higher than the main budget.
As the government started providing an additional 1 per cent cash incentive along with other existing export incentives to the textiles and readymade garments (RMG) industry from beginning 2019-2020, the sector has turned around and achieved the expected exports despite the challenges arising from the pandemic, Kamal was quoted as saying by media reports in the country.
He also proposed to include a photosensitive rotary screen, temperature sensor and loaded PCB at concessionary rates to protect textile industry workers.
Currently, apparel exporters enjoy a 4 per cent cash incentive against exports to non-traditional markets. Apart from that, the sector also enjoys a 1 per cent cash incentive to all export destinations.
Fibre2Fashion News Desk (DS)
An additional 1 per cent cash incentive against export of apparel items—along with the existing incentives—will continue into the next fiscal, Bangladesh finance minister AHM Mustafa Kamal proposed while presenting the budget for fiscal 2020-21 in parliament. With an outlay of Tk 603,681 crore, the proposed budget is about 17.4 per cent of the GDP.