Bangladesh's commerce minister Tofail Ahmed, says the government has decided to provide cash incentive at the rate of 0.25 per cent to the readymade garment (RMG) industry to overcome the fallout of Rana Plaza collapse and Tazreen Fashion fire. The government has also decided to reduce tax at source to 0.3 per cent from the existing 0.8 per cent. In case of new products and market explorations, the cash incentive has been enhanced to 3 per cent up from 2 per cent which will help the RMG sector save at least Tk 11.00 billion.
Emphasising on the need for developing garment villages in the future, he added that the process of setting up a garment village in Chittagong at the earliest possible time will commence soon and China has agreed to provide soft loans to set up the garment village.
He also informed that the contribution of RMG sector is $22 billion dollars in the overall export earnings of $30 billion in the country. Export earnings from the RMG sector would stand at $30 by 2015. The sector is expected to fetch as much as $50 billion from export of readymade garments by 2021.