The government on Monday increased cash incentives for leather goods exporters despite their repeated failure to shift polluting factories from Hazaribagh. Officials said that the cash incentives were increased to 15 per cent from 12.5 per cent at a joint meeting between the ministries of finance and commerce attended by AMA Muhith and Tofail Ahmed. The increased incentives would cost the exchequer additional expenditure of Tk 300 crore, said the officials. Increasing the cash incentives to the errant tanners drew strong protests from the environmentalists. Most of the 154 tanners run leather processing and leather goods factories at Hazaribagh and release untreated effluents in the Buriganga River. Despite hefty profits they earn they never cared to set up effluent treatment plants or shift to the tannery park the government built with modern ETPs. The Buriganga has been totally polluted due to daily release of 25,000 tonnes of untreated wastes and 60,000 cubic metres of toxic chemicals released by the tanneries. Bangladesh Paribesh Andolan general secretary MA Matin said that by increasing the cash incentives to the errant tanners the government raised fresh doubts about its commitment to shift the polluting factories from the capital’s densely populated neighbourhood. He said in last six years all the tanners missed deadline after deadline to relocate. He blamed a powerful group in the government of backing the errant tanners. Recently, the High Court Division directed each noncompliant tanner to deposit daily fine of Tk 50,00 until they shift to the tannery park at Savar. On July 19, the Appellate Division reduced daily fine to Tk 10,000. On August 1, the prime minister expressed displeasure over the inordinate delay in relocating the tanneries. Officials said that the tanners’ cash incentives were increased due to strong backing from the commerce ministry. They said the tanners’ association in a letter dated July 30 requested the finance minister to increase their cash incentives. Even before that, they said, commerce minister Tofail Ahmed in his demi official letter requested finance minister Muhith to increase the tanners’ cash incentives. Tanners Association president Shaheen Ahmed assured Muhith in letter that they were expecting to relocate their factories to Savar within months. He said the tanners invested Tk 1,200 crore at Savar to shift their factories. He said that in the backdrop of recession facing some of the developed economies and continuous fall of Euro, the tanners needed increased cash incentives to retain competitiveness of leather and leathers goods they export. In 2003, following an HC order, the government assigned Bangladesh Small and Cottage Industries Corporation to develop a tanner park at Savar with modern ETPs. The delay in shifting the tanneries escalated its cost to Tk 1,079 crore from Tk 545.36 crore, 13 years ago. In 2015-16, Bangladesh exported leather and leather goods worth $1.21 billion.
