Bangladeshi leather incentives scrapped

09/07/2012

A number of items have been omitted from the eligibility list for export cash incentives in Bangladesh.



Finished leather, crust leather bicycles and poultry have been excluded in a bid to cut back on government spending.



Prior to the announcement, finished leather exports received a 4% cash incentive, while crust leather received a 3% boost.



Responding to the change, Abdur Rashid Bhuiyan, chairman of Dhaka Hide and Skins, told the Financial Express: "The eurozone is passing through a financial crisis. The region is the main export market for finished and crust leathergoods.



"If the government excludes finished and crust leather items from the cash incentive list at this stage, it will negatively impact the sector."