The government will provide incentives to garment exporters including tax relaxation, low rate bank loans and cash to recover losses caused by the ongoing political turmoil.
Finance Minister AMA Muhith is expected to make an announcement soon in this regard taking consent from prime minister.
After a meeting with the finance minister yesterday, BKMEA’s first vice president Mohammad Hatem told the Dhaka Tribune.
The leaders of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) and Bangladesh Textile Mills Association (BTMA) attended the meeting.
Tax at source may be reduced to 0.4% from 0.8% while the banks will be asked to provide loans to pay workers’ wages for four months, Mohammad Hatem said.
However, the business leaders’ demand was reducing the tax at source to 0.25%. “The final decision will be taken after the prime minister’s approval,” Mohammad Hatem quoted finance minister AMA Muhith.
In a circular issued Thursday, finance ministry said Bangladesh Bank can reopen giving cash incentives to apparel exporters against advanced telegraphic transfer (TT).
“Bangladesh Bank can provide cash incentives to garment exporters including woven, knitwear and terry towels against advanced TT, complying with the proposed conditions,” reads the circular.
Such incentives against TT was halted after the allegations of money laundering through the system.
At a meeting with finance minister last month, the apparel leaders urged the government to reopen this cash incentives for the apparel exporters.
Then, finance minister asked the central bank’s official at the meeting to resume the facility in one week.
BGMEA, BKMEA and BTMA leaders participated in the meeting and urged the finance minister to help sector recoup their losses during political unrest. They called for financial supports.
The apparel sector leaders placed eight-point demands at the meeting.
The demands placed are payment of workers’ wages for four months from November to February creating a special packing credit and Bai Salam to be adjusted in next two years.
They also include blocking of repayment of term loans, project loans, LTR, murabaha post import service and forced loans for two years without interest and another two years grace period for loans given to textile, garment and backward linkage industries.
The leaders also demanded continuation of letter of credit and other facilities.