EPZ battery makers seek 15pc cash incentives to boost export

Accumulator battery manufacturers in Export Processing Zones (EPZs) have sought a 15 per cent cash incentive on the export of such batteries, aiming to promote the local sector and encourage exports, sources said.
The export earnings of such batteries produced under the EPZ were reduced by around 50 per cent last year due to the deprivation of the existing export incentive offer, they added.
To this effect, President of the Accumulator Battery Manufacturers and Exporters Association of Bangladesh (ABMEAB) Munawar Misbah Moin in a letter has requested the Ministry of Commerce to take the necessary steps regarding the issue.
The battery-makers want the export incentive facility to be subject to a 20 per cent local value addition, which is being produced in EPZs and also the items that are being exported.
According to the sector people, despite having huge potential in international markets, including Malaysia, Dubai, and Thailand, the sector cannot survive without policy support.
Recently, Nepal has imposed a 100 per cent assessment value on battery imports from Bangladesh and China. However, it has exempted neighbouring country India from this assessment, the letter said.
As a result, the export shipments of the item to Nepal are being largely hampered due to the imposed value, battery-makers claimed.
Accumulator battery producers in EPZs are being deprived of the existing cash incentive facility, despite accounting for 90-95 per cent of the total export volume of the product. As a result, they are falling behind in the export market due to the lack of facilities, read the letter.
On the other hand, producers outside the EPZ account for only 5.0 per cent of the export volume, but they enjoy a 15 per cent cash incentive for exporting the product. Their export growth is progressing because they receive this benefit.
The manufacturers under the EPZ have set a target to earn US$ 65 million in export earnings in the fiscal year 2025-26. They hope that the battery makers under the EPZ will be able to achieve this target by 2026 if the government provides the necessary policy and financial support, including cash incentives.
An industry insider mentioned that the size of the local market exceeds Tk 80 billion. "We have received a letter from the accumulator battery producers association and we have already written to the relevant authority regarding the issue," an official said.

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