Govt releases Tk 100cr export subsidy
Star Business Report
The Ministry of Finance has released Tk 100 crore in cash subsidy for exporters to help them pay staff salaries and Eid bonus.However, leaders of different exporters' associations demanded at least Tk 300 crore before Eid-ul-Fitr. They said they might have to face problems in paying staff salaries and bonus if they are not given the export subsidy. In this year's budget the government has earmarked Tk 602 crore as cash subsidy for exporters. On November 11 the finance ministry sent a letter regarding release of Tk 100 crore to Bangladesh Bank, which will disburse the money through commercial banks. Of the total amount, Tk 70 crore will be given to textile sector, Tk 18 crore to frozen foods, Tk 4 crore to leather, Tk 4 crore to vegetables, Tk 2.5 crore to bicycle, Tk 50 lakh to bone ash and Tk one crore to other small export sectors. To promote export and sustain in the international market, the government offers five to 25 percent cash incentives to exporters of these products. Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) President Monzurul Hoque said the garment exporters are to get Tk 600 crore in cash subsidy but only Tk 70 crore has been allocated for them which is insufficient. He said the garment exporters will not be able to pay bonus and salary to their workers if they didn't receive that money from the government. Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Quazi Moniruzzaman demanded quick release of the government's allocation to avert recurrence of incidents that happened at Narayanganj recently. "We need at least Tk 300 crore before Eid," he said. According to Export Promotion Bureau (EPB), Bangladesh exported woven garment worth $914.8 million, knitwear $535.48 million, frozen foods worth $113.35 million, vegetables $5.2 million, leather $48.84 million, and bicycle $13.03 million during the July-September period of the current fiscal.
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