The government has decided to include four more export items for offering cash incentives, raising the tally to 18, aiming to help boost their overseas shipment, officials said.
While reviewing the cash incentive package on Thursday, however, a meeting held at the secretariat, chaired by Finance Minister AMA Muhith, did not exclude any sector from entitlement of the benefit from the existing list, they added.
Finance Secretary Mahbub Ahmed told The Financial Express (FE) that among the new sectors included in the incentives package, the furniture sector will get 15 per cent cash benefit against duty drawback while plastic goods 10 per cent, crop seeds 20 per cent, and jute stick carbon products 10 per cent.
Besides, in the face of price fall of Euro against Taka, the government has decided to offer 2.0 per cent cash incentives to apparel product exports to Euro Zone.
 In addition, cash incentives for leather goods export has been increased to 15 per cent from 12.5 per cent and cash incentive for potato flake export has been doubled from existing 10 per cent.
The meeting also enhanced ceiling price of white fish to US$1.97 per pound from $1.10 per pound. White fish enjoys 5.0 per cent cash incentives. Besides, the ceiling price for shrimp export has also increased to $4.98 per pound from $3.79. Shrimp export is entitled to get 10 per cent cash incentives.
Replying to a query, Mahbub Ahmed said none of the existing sectors has been excluded from the list. "Exporters from many other sectors have been demanding cash incentives, but we could not include them this time."
Top government officials attended the meeting where benefits accrued from cash incentives have been reviewed, sources said.
Commerce Minister Tofail Ahmed also attended the meeting on special invitation.
Sources said Bangladesh Bank will soon issue a notification making effective the new decisions taken at the meeting regarding the cash incentive package. Each year the government spends around Tk 35 billion as cash incentives and some Tk 20 billion of the same goes to the readymade garment sector alone.
Presently, some 14 sectors get cash incentives against their export proceedings. Central Bank data shows that in fiscal year 2014-15 some Tk 34 billion was given as cash incentives to those sectors. The incentives vary from 2.0 to 20 per cent for different export sectors.
Bone-powder export gets 5.0 per cent cash incentives, leather goods get 12.5 per cent, finished jute products get 7.5 per cent, jute yarn export get 5.0 per cent, and light-engineering goods get 15 per cent.
Besides, exporters of new apparel items to new markets, excluding the United States, Canada and the European Union, enjoy 3.0 per cent of the cash-incentive cake. Small and medium enterprises who export apparels get 4.0 per cent in their share.
Products made of elephant grass, paddy straw and sugarcane straw get 15-20 per cent, exports of vegetables, fruits, processed agricultural products, halal meat and potato enjoy 20 per cent, potato flake exporters get 10 per cent, and ship exporters get 5.0 per cent of the cash incentives.
Diversified jute goods enjoy 10 per cent incentives while frozen shrimp from 7.0 to 10 per cent on various conditions, and other frozen-fish exports get 2.0 to 5.0 per cent this fiscal year.
When contacted, President of Exporters Association of Bangladesh (EAB) Abdus Salam Murshedy welcomed the government decision saying that it will help export-oriented sectors to get relief from pressure generated from price fall of Euro. "It's a timely decision. We are struggling to survive," he said.
Murshedy said some $17 billion worth apparel goods go to Euro Zone from Bangladesh. "The new incentive for apparel export to the zone will be a real help."
   syful-islam@outlook.comÂ
Four more export sectors to get cash incentives
Syful Islam | Published: December 11, 2015 00:00:00 | Updated: December 10, 2015 23:57:18
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