Experts have opined that proper incentives should be given to leather sector in order to increase Bangladesh's exports through the industry.
The opinion was aired by discussants at a meeting between Business Initiative Leading Development (BUILD) and the Leather Goods and Footwear Manufacturers and Exporters Association of Bangladesh (LFMEAB) on Tuesday.
As a non-traditional sector, the leather industry gets little access to the Export Development Fund as compared to ready-made garments. Along with reforming the policy in this regard, tax should be reduced on royalties in order to hit the $5 billion export target, speakers at the meeting said.
They added that the efficiency of the port also needed to be considered in ordered to increase exports, suggesting that port handling be handed over to the private sector as they had an excellent track record in the matter. This may result in revenue growth, increased efficiency, and a decrease in lead times for export and import.
Speakers also recommended the set up of a central bonded warehouse and the introduction of a passbook system.
They further said that the establishment of a leather product village adjacent the Savar tannery estate would accelerate growth in the leather industry.
The meeting was attended by various senior officials of BUILD and LFMEAB. BUILD shared its policy framework for policy advocacy with LFMEAB at the meeting, to help the leather sector grow in Bangladesh.