Exporters to get Tk 11b cash incentives this year

Dhaka,  Mon,  25 September 2017
Published : 19 Jun 2017, 21:59:11

Exporters to get Tk 11b cash incentives this year

FE Report

The government has released cash incentives amounting to Tk 11 billion to be disbursed among major exporters for the fiscal year (FY) 2016-17.

The ministry of finance in the first week of this month advised the Chief Accounts Officer of the Finance Division to release the fund in favour of the central bank to start disbursement of the fourth installment from April to June, 2017.

Local exporters have been advised to seek the fund by applying to the Bangladesh Bank (BB) through respective banks against their exports during the period.

Of the Tk 11.00 billion, the jute and jute product sub-sector will get Tk 1.00 billion, while other sectors will receive the remaining amount.

At present, some 20 export sectors including textiles and apparels, frozen fish, leather products, agro-based products and agro-processing industry, halal meat, bone paste, potato, light engineering, ship and pet bottle flakes are receiving cash incentives.  

Under the cash incentives programme, agro-products and processed agro-products, halal meat, diversified jute products, carbon made from jute and seeds of vegetables and crops are getting the highest 20 per cent cash subsidy.

The small and medium garment factories are receiving additional 4.0 per cent subsidy, while 3.00 per cent are being provided to new products and new market expansion except the USA, Canada and the European Union and 2.00 per cent for export to the EU.

The export-oriented local textiles sector is receiving 4.0 per cent alternative cash incentives instead of customs bond and duty-drawback facility.

Light engineering products, leather goods and furniture exports and products from elephant grass (hogla), paddy straw (khor) and sugarcane bark (akher chobra) are given 15 per cent incentives. Exporters of ships, potato, pet bottle and plastic products are enjoying the support at the rate of 10 per cent.

Editor : A.H.M Moazzem Hossain
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