Ito Naoki, the Japanese Ambassador to Bangladesh, has proposed extending the existing cash incentive benefits on readymade garment (RMG) exports to 100 per cent foreign and joint investment companies listed under the export processing zones (EPZs) in Bangladesh even as he underlined this was important to improve the investment climate in Bangladesh and encourage more foreign companies to come to the country.
Media reports maintained this adding in a recent letter to Finance Secretary Fatima Yasmin, Ito Naoki, reportedly, said extending this facility to all will increase Bangladeshi exports to Japan as well as Japanese investments in the country (Bangladesh).
It may be mentioned here that at present, only the domestic apparel companies get cash incentives for exporting products to new markets even as the Japanese envoy recommended reducing the existing 5 per cent cash incentive against RMG exports to 2 per cent and providing it to all, which will also make sure that the cost to the Government is also not increased.
