Govt to incentivise leather exports for next five years, says Hasina

The government will continue to provide cash incentives to exporters of leather goods and shoes for the next five years, Prime Minister Sheikh Hasina has said.

She made the announcement during the inauguration of ‘Bangladesh Leather Footwear and Leather Goods International Sourcing Show’ on Wednesday.

“Equal opportunity and policy support will be ensured for all export sectors. We’ll remove any disparity or obstacle,” she said while highlighting her government’s initiative to develop the leather industry.

The government is playing an active role in assisting manufucturers of new products and creating new markets, said Hasina.

“I can assure you that you’ll receive all necessary assistance from us,” she told the business community.

Exporters with factories at the Savar Industrial Area will be entitled to a 5 percent cash subsidy against the export cost from the government along with a 0.6 percent tax deduction at source.

There are other incentives set out in the new policy adopted by the government this year for the development of the leather industry.

Bangladesh has also enhanced its economic diplomacy to connect producers of leather goods in the country with importers around the world, said the prime minister.

As a result, the leather goods and footwear industry surpassed the jute sector to become the country's second largest export earner raking in Tk 1.02 billion in the last fiscal year.

“We’ll be able to earn $5 billion through the sector by 2022 If we can use all of our rawhide supplies to make the ‘finished product’ and export them,” said Hasina