Three more export cloths –woven, knit and terry towels- will get five percent cash incentive from the government even for transactions through telephonic transfer.
The finance ministry has decided on this. So far, only cloth made from native yarns used to get the incentive against Letters of Credit.
The government has asked Bangladesh Bank to take the necessary steps to provide such aid to those who export through transactions of Telephonic Transfer.
The ministry’s monitoring cell issued a circular on Jan 2.
Tk 22 billion has been allocated for 2013-14 fiscal years in the current budget to provide cash aid to those who export native yarns-made cloth.
The ministry releases 5.5 billion every three months from this allocation.
Now the central bank has been asked to take the necessary steps to provide cash aid against advanced telephonic transferring orders for woven, knit and terry towels.
“It is our long demand to get cash assistance against telephonic transfer orders,” said Md Hatem, vice president of Bangladesh Knitwear Manufacturers and Exporters Association
“It will be useful for the textile sector at such a critical time,” he told bdnews24.com.
One-third the transaction of the knitting sector takes place through telephonic transfer. Such transactions also in the woven sectors, said Md Hatem.
He said products of Tk five to six billion are exported abroad through telephonic transfer every year.
Source: Bd news24
