Online Desk: Domestic plastic goods makers have demanded that the amount of the previously-set cash incentive continue as the recently revised rate is not timely for the sector.

Shamim Ahmed, president of the Bangladesh Plastic Goods Manufacturers and Exporters Association (BPGMEA), made the demand on Thursday.

Citing a recent central bank circular, he said in a press statement that the incentive rate for the sector has been reduced to 8.0 per cent from 10 per cent.

Officials said the association recently sent formal requests to both finance and commerce ministries to this end.

The BPGMEA chief requested the authorities to reconsider this decision in order to protect the interest of the industry as well as overall economy.

The Bangladesh Bank circular did not mention any alternative incentive for the plastic industry, said the statement.

However, many middle-income countries provide alternative incentives rather than direct incentives for their industries.

The issue of providing alternative incentive has come up in various government and private studies of the country, according to the statement.

“We don’t think the sudden reduction in the current incentive system without any alternative one is a helpful step for industry and economy.”

However, in case of any incentive cutbacks, competing countries increase support for their industries, for example, export development fund in India, and Vietnam trade policy and promotion project.

Even in rich countries like the USA, cotton cultivation is subsidised to encourage export trade.

The plastic sector is an emerging sector. It is diversifying export products to cater to the needs of foreign buyers and earning foreign exchange.

Bangladesh exports 150 varieties of plastic products to more or less 126 countries.

The plastic industry has been growing at a rate of 20 per cent for the past two decades. The position of this sector in terms of export is 12th.

The government has also included the plastic sector as a priority one in the Import and Export Policy-2024, according to the BPGMEA.