From now on, businesses will be able to get cash incentives for exporting leather goods produced at their own factory, the central bank said in a circular issued on Thursday.
Previously, only 100% export-oriented companies were eligible for the incentives.
In the circular issued by the Foreign Exchange Policy Department (FEPD), in addition to 100% export-oriented companies, any company can get the incentives for exporting leather goods produced at their own factory.
The circular was issued following complaints from government agencies that many companies were taking the cash incentives despite not being completely export-oriented, a senior official of the central bank said.
However, companies that export leather goods produced in factories owned by a different company will not be eligible for the incentives.In a bid to boost export of leather goods, the government has been offering cash incentives since 2000. At present, a 12% cash incentives are given against the exported products.
