The commerce ministry has requested finance ministry to continue 15 per cent cash incentive against export receipts from leather goods and footwear for next five years to achieve the $5 billion export target by 2021.‘Commerce ministry thinks that the continuation of 15 per cent cash incentive is essential to attract foreign direct investment for the leather sector and to promote the export earnings to $5 billion by 2021 from this sector,’ the ministry said in a recent letter to the finance ministry.The commerce ministry advised finance ministry to take initiative to continue cash incentives for leather sector before November 16 so that prime minister Sheikh Hasina can announce the continuation of incentive for five years at the inaugural session of an international sourcing show on the day in Dhaka.The prime minister’s announcement over policy for a sustainable leathers sector as well as for 15 per cent cash incentive at the event would encourage foreign investors to invest in Bangladesh’s leather sector.With an aim to expand products diversification, the government announced leather and leather products as product of the year 2017 setting $5 billion export earnings target by 2021 from the sector. The commerce ministry adopted a yearly work programme in consultation with the stakeholders.Under the yearly work programme, the ministry proposed cash incentive at the rate of 16.5 per cent for the leather sector exporters and to continue the incentive up to 2021.Letter on, the government has set cash incentive for the leather sector exporters at the rate of 15 per cent against export receipt for the financial year 2017-18. As part of yearly work programme, a three-day international exhibition, namely, Bangladesh Leather Footwear, Lather Goods International Sourcing Show will be held in Dhaka on November 16-18.Brands, buyers and investors from 15 countries including China, Japan, Vietnam and Thailand will participate in the show.Country’s export earnings from leather and leather goods in the financial year 2016-17 stood at $1.23 billion which was 6.29 per cent higher than the earnings of $1.16 billion in the FY 2015-16, according to the Export Promotion Bureau data.
