The government has announced a list of 14 exportable products that would receive cash subsidy in the current fiscal year (FY) 2015-16, officials said.
Cash subsidy for four products including textiles has, however, been reduced while one item-light engineering-will get higher incentive.
The exporters will receive cash subsidy on the products against net repatriation of the FOB (free-on-board) prices from July 01, 2015 to June 30, 2016, according to the announcement.
The central bank issued a circular in this connection Monday and asked the commercial banks to follow its provisions for providing cash subsidy for the exportable products.
"We've issued the circular in line with the decision of the Ministry of Finance (MoF) on cash subsidy for the FY 16," a senior official of the Bangladesh Bank (BB) told the FE.
He also said the cash subsidy on small and medium industries in textiles sector and export-oriented local textile industries was reduced slightly in the FY 16 while cash incentive for light engineering products increased substantially.
"We're working as an implementing agency in this connection," the central banker said.
The cash incentive for export-oriented local textile sector came down to 4.0 per cent in FY 16 as an alternative to duty bonds and duty drawbacks from 5.0 per cent a year ago.
Exporters from small and medium industries in textiles sector will get an additional incentive of 4.0 per cent along with the regular incentive instead of 5.0 per cent earlier.
The cash subsidy on light engineering products has risen to 15 per cent in the FY 16 from 10 per cent in the previous fiscal year.
On the other hand, the cash incentive for bone dust exports has come down to 5.0 per cent in the FY 16 from 15 per cent in the FY 15 while the cash subsidy on leather goods has been re-fixed at 12.50 per cent from 15 per cent.
Exporters of halal meat, agro-products (vegetables and fruits) along with agro-processing products and potato will continue to receive 20 per cent incentive while ship exporters will get 5.0 per cent cash incentive.
The cash incentive for pet bottle-flex will remain unchanged at 10 per cent, the circular said. The exporters of shrimp will continue to receive 10 per cent cash incentive against their export while for the exporters of diversified jute products, finished jute products and jute yarn will get 10 per cent, 7.50 per cent and 5.0 per cent respectively.
The cash subsidy on handmade products from hogla, hay and sugarcane fibre will remain unchanged at 15-20 per cent for the FY 16 while 3.0 per cash incentive will be unchanged for export of new textile products and expanding export of apparel items to new markets other than the United States Canada and the European Union.
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