20 items to receive export cash subsidy in FY ‘17

Dhaka,  Monday,   2016-09-20
Published : 20 Sep 2016, 21:43:57

20 items to receive export cash subsidy in FY ‘17

Govt adds three new products to the list
FE Report

The government has announced a list of 20 exportable products, including three new ones, for receiving cash subsidy in the current fiscal year (FY), 2016-17, officials said.

The new three products, which have been included in the list, are carbon made from jute, intestines and others selective organs of cow and buffalo, and seeds of vegetables and crops.

Besides, the crust and finished leather exporters, who have shifted their industries to Savar, will get 5.0 per cent extra cash incentive from FY 17.

However, cash subsidy for two products, including potato, has been reduced, while the same number of items will get higher incentive.

The exporters will receive cash subsidy on the products against net repatriation of FOB (free-on-board) prices from July 1, 2016 to June 30, 2017.

The central bank issued a circular in this connection on Tuesday, and asked the commercial banks to follow its provisions for providing cash subsidy for the exportable products.

Talking to the FE, a senior official of the Bangladesh Bank (BB) said the central bank issued the circular in line with the decision of the Ministry of Finance (MoF) on cash subsidy for FY 17.

"We're working as an implementing agency in this connection," the central banker mentioned.

He also said the cash incentive for the country's export-oriented local textile sector remained unchanged in the fiscal.

The cash incentive for both carbon and intestines has been fixed at 20 per cent, while the exporters of seeds of vegetables and crops will get 10 per cent subsidy in the current FY.

On the other hand, the cash incentive for potato exports came down to 10 per cent in FY 17 from 20 per cent a year ago, while the cash subsidy on handmade products from 'hogla' has been re-fixed at 15 per cent from 15-20 per cent.

The exporters of diversified jute products, finished jute products and jute yarn will get 20 per cent, 7.50 per cent and 5.0 per cent subsidy respectively in this fiscal instead of 10 per cent, 7.50 per cent and 5.0 per cent earlier.

Editor : A.H.M Moazzem Hossain
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