No incentive for errant tanners

The government has decided not to pay any cash incentive to leather exporters who have failed to transfer their factories from the city's Hazaribagh area to Savar Tannery Industrial Estate, officials said.
Presently, leather and leather goods exporters get 15 per cent cash incentive. In fiscal year 2015-16, the sector earned US$1.16 billion by exporting goods while leather exports alone fetched $277 million.
The decision was taken Monday at a meeting on providing cash incentives to export-oriented sectors with finance minister AMA Muhith at ministry's conference room.
Despite immense pressure from the government as well as civil society organisations, only one tannery has so far shifted to Savar.
The Supreme Court recently ordered the owners of 154 tanneries to pay a fine of Tk 10,000 each a day until they relocate their tanneries to the industrial estate. They were also fined for damaging environment in Hazaribagh area.
Sources said, the meeting decided to include two new sectors for enjoying cash incentive facility while one was dropped.
Exporters of Agar, a fragrant plant, will get 20 per cent and locally-made newsprint exporters 10 per cent cash incentives.
Besides, cash incentives for raw potato exporters have been cut down to 10 per cent from existing 20 per cent.
On the other hand, bone powder export sector has been excluded from the list of sectors enjoying cash incentive facility, meeting sources said.
According to officials, cash incentive for diversified jute products has been increased to 15 per cent from existing 10 per cent, and ship  exporters will get 10 per cent from previous 5.0 per cent. The cash incentives for other sectors were kept unchanged in the meeting.
Presently, export-oriented sectors enjoy incentives ranging from 2.0 to 20 per cent. Of them, finished jute products get 7.5 per cent, jute yarn 5.0 per cent, and light engineering goods 15 per cent.
Besides, exporters of new apparel items to new markets, excluding the United States, Canada and the European Union, enjoy 3.0 per cent of cash incentive.
Small and medium enterprises, which export apparels, get 4.0 per cent in their share.
Products made of elephant grass, paddy straw and sugarcane straw get 15-20 per cent, exports of vegetables, fruits, processed agricultural products, halal meat 20 per cent, and potato-flake exporters 20 per cent cash incentives.
The frozen shrimp sector gets 7.0 to 10 per cent on various conditions, and other frozen fish exports from 2.0 to 5.0 per cent. The furniture sector gets 15 per cent cash benefit against duty drawback, plastic goods 10 per cent, crop seeds 20 per cent, and jute stick carbon products 10 per cent.
Besides, apparel products' export to Euro zone gets 2.0 per cent cash incentive following price slump of Euro against Taka.
A senior official at the ministry of finance told the FE Monday that the central bank would issue a circular soon regarding revised rates of cash incentives and the rate will be effective from the very first day of the current fiscal year.
When contacted, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Siddiqur Rahman told the FE Monday, they had demanded raising of cash incentive rate to 5.0 per cent from existing 3.0 per cent against export of apparel items to new markets, excluding the United States, Canada and the European Union.
He said, the meeting could not take a decision on this issue. "We, the three sector leaders of apparel industry, will meet soon to decide next course of action in this regard."  
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