SMEs in Bangladesh: In for some good time?

Lately, the Bangladesh Government has decided to extend policy support to garment exporting factories falling under the SME category to improve their competitiveness during this time of the pandemic. Sometime back, the central bank of Bangladesh, the Bangladesh Bank (BB) issued a notice underlining that such garment factories (falling under SME category) focusing on knitwear, woven items, sweaters, terry towels and home textiles would get a cash incentive. Factories whose exports amount to up to US $ 5 million are considered as SMEs in the garment sector. So, they will enjoy the benefit. A 4 per cent incentive would be provided on 30 per cent value addition even if the garment items were made out of imported fabrics and yarn, the notice said. The SMEs will even be able to avail the benefit on export receipts of last fiscal year, it added. It may be mentioned here that the big units have been enjoying a 4 per cent cash incentive on export receipts on the use of local yarn and fabrics in production and manufacturing of garment export. The Government has been providing it since 2009 when the local factories underwent severe implications on account of the global financial recession of 2007 and 2008. For more insights, click @ Apparel Resources