The Bangladesh government is introducing stricter regulations for cash incentives provided to garment exporters and withdrawing duty concessions for luxury hotels in the upcoming budget. Under the new rules, garment exporters who rely on materials supplied by buyers will need to meet a revised value addition calculation of at least 20% to qualify for cash incentives. The calculation will be based on the price of goods purchased from the local market and the value of cutting, making, and trimming (CMT) materials. Additionally, the duty concession on imported materials for luxury hotel construction will be removed to encourage self-reliance in the sector. While these measures aim to enhance accountability and revenue collection, industry insiders express concerns about potential complications and challenges for the garment and hospitality sectors.
Govt Tightens Cash Incentive Eligibility for Garment Exporters
- Published On May 18, 2023
- 12:53 pm
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Industry: RMG & Textile
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