The government will provide cash incentives for leather products manufactured in the exporters' factories, as well as in 100 per cent export-oriented manufacturing companies.
A circular in this regard was issued by the Foreign Exchange and Policy Department of Bangladesh Bank on Thursday.
The circular stated that, according to the government decision, cash assistance would be given to 100 per cent export-oriented manufacturing companies, as well as for the export of leather products produced in their factories.
Other instructions related to cash assistance mentioned in the circular will remain unchanged.
The government has been providing 15 per cent cash assistance to leather industry companies that are 100 per cent export-oriented to support the leather sector for a long time. However, in January this year, on the advice of the International Monetary Fund (IMF), cash assistance was reduced for 43 products.
The leather sector was one of them. On January 30, the government decided to reduce the cash assistance for leather and leather products from 15 per cent to 12 per cent.
