The top business bodies also highlighted the potential risks associated with this move, particularly for approximately 200 export-oriented spinning mills crucial to the country's garment industry, its primary export revenue generator.
In discussions with the media, Alam underscored the widespread concern among exporters across various sectors, including apparel, jute, and furniture, regarding the impact of the incentive cuts.
He highlighted the necessity of consulting stakeholders before implementing such measures while also underlining the importance of preparing exporters for the forthcoming challenges.
Alam pointed out that many middle-income countries adopt policies to indirectly support their local industries to ensure their survival even as he cautioned against abrupt changes and the withdrawal of cash incentives without viable alternatives, warning of adverse repercussions for both the industry and the economy.
The FBCCI president recommended prioritising efforts to enhance port capacity, streamline trade facilitation activities, and implement a more business-friendly tax policy.
He also urged the government to reduce the cost of doing business, logistics expenses, and customs charges to offset the adverse effects of the incentive cuts.
ALCHEMPro News Desk (DR)
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