The Bangladesh government’s policy of promoting readymade garment exports has created an anti-export bias for other sectors and put hindrances in competition and product diversification in the non- RMG sectors, says a Asian Development Bank (ADB) report.
he report titled ‘Country Diagnostic Study: Consolidating Export-led Growth’ recommends the government identify barriers to other productive sectors and eliminate anti-export bias against non-RMG export for ensuring economic diversification. The ADB report recommended withdrawal of some RMG sector supports which have outlived their useful lives.
‘As a general principle, incentives for new industries need to be time-bound while these [the RMG sector incentives] are not. Special incentives, such as corporate income tax exemption or tax holidays for imported machinery, need to be removed,’ the report said.
Metropolitan Chamber of Commerce and Industry president Syed Nasim Manjur feels the government’s wrong policy discouraged non-RMG sectors’ growth. He said, that the government provided zero-tariff facility for importing fire safety equipments for RMG sector but imposed up to 65 per cent duty on the items for the non-RMG sectors. The industry president said that the RMG sector enjoys various tax benefits including incentive but other sectors are not entitled for the benefits that lead an entrepreneur shutting his/her non-RMG units. He demanded a long-term sustainable support for the non-RMG sectors.
