Bangladesh garment exporters got something to cheer about when the central bank of Bangladesh, Bangladesh Bank announced cumulative cash incentives, up to 12 percent, against garment exports.
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The bank provides garment exporters with up to three types of cash incentives, out of four, against garment exports. Earlier, the garment exporters in Bangladesh received 10 percent in cumulative cash incentives.
This fiscal, the cash benefits will not be slashed, said Bangladesh Bank.
As per a directive issued by Bangladesh Bank, the provision of capping the cumulative cash incentives at 10 percent has been scrapped.
In Bangladesh, garment exporters get 4 percent cash incentive as a substitute to duty bonds and duty drawbacks. 4 percent incentive for apparel export for the small and medium industries.
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And, 4 percent for export of new textile and garment products and expanding export of textile items to new markets, except the USA, Canada and the European Union.
An additional 2 percent cash incentive for garment exports to the EU is also given.