BP Business Desk
To encourage export trade of jute goods exporters, operating at export processing zones (EPZs), the Bangladesh Export Processing Zones Authority (BEPZA) seeks intensive for them.
To this regard, the authority has sent a letter to finance ministry and commerce ministry simultaneously seeking the facilities for the business group.
On condition of anonymity, a finance division official said they have received a BEPZA letter concerning cash incentive on which they are now working.
BEPZA member (investment and promotion) Zillur Rahman explained in the letter why jute industries at EPZs should be incentivised. It is to be noted, about 70 per cent of the fully foreign-owned 'Type A' and joint-venture 'Type B' companies within EPZs don't get cash incentives for jute goods exports. Similarly, some 30 per cent of the fully locally-owned 'Type C' companies within EPZs are also not entitled to this facility, the letter explained.
For this, factories producing jute items under EPZs are falling behind others in export competence gradually, Mr Rahman mentioned.
The government provides cash incentives for jute industries to help boost export earnings from the sector every fiscal year (FY).
According to a central bank circular, jute yarn, hessian and diversified jute goods exporters get 7.0 per cent, 12 per cent and 20 per cent cash incentives respectively. But the government keeps all factories under EPZs out of such incentive facility, report agencies.
There are eight EPZs under BEPZA. They are Chittagong EPZ, Dhaka EPZ, Mongla EPZ, Iswardi EPZ, Cumilla EPZ, Uttara EPZ, Adamjee EPZ and Karnaphuli EPZ.
