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Five more sectors may get cash incentives

$60b export target by 2021


Syful Islam | May 31, 2019 00:00:00


The government is likely to extend cash incentives facility to five more local products to help boost exports, officials said.

They said the Ministry of Commerce (MoC) has finalised a list of products for providing cash incentives and will send it to the Ministry of Finance soon for its consideration.

The products include medical/ surgical instruments and appliance, bags made of synthetic and fabrics, disposable plate made of areca leaf sheath and garment accessories and packaging.

However, members of the Bangladesh Jute Goods Exporters Association will get the incentives against their exports on a free on board (FoB) basis.

Besides, the ministry has decided to recommend raising the rates of cash incentives for locally-produced paper and paper goods to 30 per cent from the existing 10 per cent.

It has also decided to recommend from 15 per cent to 20 per cent incentives for polyester staple fibre made of pet bottle flex.

A senior ministry official told the FE a list of products has been finalised and will be sent to the finance ministry shortly for consideration.

Presently some 35 products get cash incentives against their exports.

The products include pharmaceuticals, photovoltaic modules, motorcycles, chemical products, razors and razor blades, ceramic products, caps, crabs, mud eels and galvanised sheets/coils, jute goods, jute yearn, jute hessian, sacking and carpet backing cloths, and apparel products.

The list also include intestines, horns and arteries (without bone), crust and finished leather goods, ship, plastic products, leather goods, light engineering products, furniture, accumulator battery and shoes made from synthetic fibres and fabric, frozen fish, charcoal, agricultural products, halal meat, potatoes and seeds, and polyester staple fibre produced from pet bottle-flex.

Officials said the incentives will help the country raise exports to US$60 billion by 2021.

Every year the government allocates nearly Tk 45 billion as cash incentives/subsidy for the country's export-oriented sectors.

The bulk of the allocation goes to the apparel sector accounting for as much as 40 per cent.

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