The central bank on Monday lowered the value-addition threshold for the country's garment exporters to 20 per cent from 30 per cent for the current fiscal year.
Apparel exporters will now get cash incentives or financial assistance from the government on exports with 20-per cent local value addition, according to a circular issued on Monday.
The instruction will be applicable to incentive applications against the shipped consignments which are still to be resolved in fiscal year 2021-22, it cites.
On 20 September 2021, the Bangladesh Bank declared 42 products or sectors eligible to receive state incentive or cash assistance against export earnings this fiscal.It also made at least 30 per cent local value addition mandatory for all products to get the incentive.
After the issuance of the September circular, Bangladesh Garment Manufacturers and Exporters Association, and Bangladesh Knitwear Manufacturers and Exporters Association opposed the decision and demanded lowering the rate.
