The government has eased the local value addition criteria for textile and garment makers to claim export subsidy.
Apparel manufacturers will now get export subsidies for 20% value addition, which was earlier set at 30%, according to a circular issued by Bangladesh Bank on Tuesday.
Local value addition means the enhancement of the value of the unit price of the imported goods made at the factory.
It is calculated by deducting the import cost of materials from the net export price of the products.
So as per the latest circular, the apparel exporters will now get 4% cash incentive for 20% value addition.
