Domestic electronic goods manufacturers have sought a 20-per cent cash incentive for the next 10 years to promote and diversify the sector, officials said.
Bangladesh Electrical Merchandise Manufacturers Association (BEMMA) has recently requested commerce minister to this effect.
A ministry official said, “We’ve received a BEMMA letter that seeks 10-per cent more cash incentive with existing 10 percent. We’re looking into the issue.”
Exporters of consumer electronic as well as electrical home and kitchen appliances are already enjoying a 10-per cent cash incentive against their exports.
The central bank issued a circular in September 2019 that is in effect from July 01, 2019 to June 30, 2020.
Refrigerator, freezer, TV, air conditioner, washing machine, microwave, juicer and blender, air cooler, LED light, fans and switch sockets are known as consumer electronic/electrical household appliances.
Most of the entrepreneurs in the sector import their basic raw materials from aboard. Besides, import duty on raw material is higher that increases production costs of electrical items.
BEMMA leaders want that the government initiate to increase the rate of cash incentive on export earnings for survival in competition among China, Indian, Malaysia, Vietnam and Taiwan.
Prime Minister Sheikh Hasina announced light engineering goods as the product of the year for 2020 at the inaugural of this year’s Dhaka International Trade Fair.
She made the declaration to help the sector prosper.
Currently, there are about 1,300 members registered with the BEMMA, according to the association’s data.
―The Financial Express