The readymade garment manufacturers in Bangladesh have demanded that the Government relax the condition of at least 30 per cent value addition for woven items to stay eligible for a 4 per cent cash incentive as well as all subsidies even as Faruque Hassan, who is the President of the BGMEA, the apex garment makers’ body in the country, wrote a letter to Commerce Minister Tipu Munshi this month in this regard wherein he proposed cutting the value addition rate to 20 per cent.
Media reports maintained this while adding BGMEA has also, reportedly, sought a 4 per cent cash incentive on export-oriented garments made from imported raw materials.
Many of us will not be able to meet this condition (for woven garments), we need to import 70 to 80 per cent of fabrics and accessories…, reportedly, maintained BGMEA Vice-President Md. Shahidullah Azim interacting with the media while adding cash incentive was previously available subject to adding 20 per cent value, which has recently increased to 30 per cent even as the letter written by Faruque Hassan to the Commerce Minister, reportedly, maintained the relaxation is very essential for the apparel exporters who are trying to survive by absorbing the pandemic shocks while adding this facility will also draw in more investment and create job opportunities.