Bangladesh leathergoods and footwear exporters state their case
The Bangladesh Finished Leather, Leathergoods & Footwear Exporters' Association (BFLLFEA) has urged its government to remove the import duties that apply to footwear machinery and dramatically reduce those that apply to footwear components.
In its proposal for 2004-2005 budget, BFLLFEA said that if the government was serious in its intent to helping firms become more competitive, the footwear component levy should be reduced from its current level of 25% to 2.5% and footwear exports be made VAT exempt. In the proposal, submitted to the National Board of Revenue, the association also urged the government to exempt the leather industry from the 2.5% development surcharge that applies to the import of raw materials such as chemicals, for a 15 percent cash incentive to be introduced in relation to crust and finished leather exports, and for export earnings to be made exempt from income tax.
