Incentive package Sunday against recession: Muhith
Friday, 17 April 2009
FE Report
Finance Minister AMA Muhith has said the government will announce a 'temporary' incentive next Sunday for helping different sectors mitigate their immediate problems due to the impact of the global meltdown, while main stimulus package will be incorporated in the ensuing budget.
"We are announcing an incentive package Sunday, which will be a temporary support for building confidence among the affected sectors.
More about such stimulus will be put in place in the upcoming national budget," Mr Muhith told newsmen after a meeting with a delegation of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), led by its president Salam Murshedi, at the Finance Ministry.
The finance minister, however, said such support will also be continued depending on the impact of the ongoing global recession.
When asked, the minister said the sick industries will not come under the government's immediate incentive package. Rather, support will be given so that no more local industries become sick because of the global recession, he added.
Although the returning Bangladeshi workers are unlikely to get any immediate support, some cushions will be there for creation of more job opportunities in the country, he said.
"The domestic economy has to be kept booming against the backdrop of the global financial crisis. The Sunday's incentive package will have the reflection of it," the finance minister said.
During the meeting, the BGMEA leaders urged the government to offer a 'stimulus package' for the local readymade garment (RMG) sector to help it cope with the global recession.
The RMG exporters also placed an 18-point charter of proposals, including providing of 10 per cent cash subsidy on their export values, offering of an additional Tk 10 against the exchange of each US dollar on top of 30 per cent of their total export values and introduction of 'Export Performance Bonus' for helping them face the external shock.
Other proposals include exemptions of the existing 0.25 per cent tax at source and VAT (value added tax), reduction of the port charges to a comfortable level, bringing down the bank interest to a 'single digit', providing subsidy on bank interest and introducing an 'exit policy' for 270 sick RMG units.
The BGMEA president informed the finance minister that already the export values of local garments declined by around 25 per cent in recent times due to a significant fall in their imports by the USA and European countries.
Finance Minister AMA Muhith has said the government will announce a 'temporary' incentive next Sunday for helping different sectors mitigate their immediate problems due to the impact of the global meltdown, while main stimulus package will be incorporated in the ensuing budget.
"We are announcing an incentive package Sunday, which will be a temporary support for building confidence among the affected sectors.
More about such stimulus will be put in place in the upcoming national budget," Mr Muhith told newsmen after a meeting with a delegation of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), led by its president Salam Murshedi, at the Finance Ministry.
The finance minister, however, said such support will also be continued depending on the impact of the ongoing global recession.
When asked, the minister said the sick industries will not come under the government's immediate incentive package. Rather, support will be given so that no more local industries become sick because of the global recession, he added.
Although the returning Bangladeshi workers are unlikely to get any immediate support, some cushions will be there for creation of more job opportunities in the country, he said.
"The domestic economy has to be kept booming against the backdrop of the global financial crisis. The Sunday's incentive package will have the reflection of it," the finance minister said.
During the meeting, the BGMEA leaders urged the government to offer a 'stimulus package' for the local readymade garment (RMG) sector to help it cope with the global recession.
The RMG exporters also placed an 18-point charter of proposals, including providing of 10 per cent cash subsidy on their export values, offering of an additional Tk 10 against the exchange of each US dollar on top of 30 per cent of their total export values and introduction of 'Export Performance Bonus' for helping them face the external shock.
Other proposals include exemptions of the existing 0.25 per cent tax at source and VAT (value added tax), reduction of the port charges to a comfortable level, bringing down the bank interest to a 'single digit', providing subsidy on bank interest and introducing an 'exit policy' for 270 sick RMG units.
The BGMEA president informed the finance minister that already the export values of local garments declined by around 25 per cent in recent times due to a significant fall in their imports by the USA and European countries.