Government releases 3rd instalment of cash incentives for exporters
FE Report | Friday, 23 January 2015
The government has released the third instalment of cash incentives amounting to Tk 8.75 billion for disbursement among some selected export earning sectors for fiscal year (FY), 2014-15.
The Ministry of Finance advised the Chief Accounts Officer of the Finance Division on Wednesday to release the fund in favour of the Bangladesh Bank to start disbursement of the cash incentives for a period from January to March of this year.
The local exporters have been advised to seek cash incentives by applying to the central bank through respective banks. The major exporters will receive the cash incentives against their exports during the period.
Of the Tk 8.75 billion cash incentives, the jute and jute products sub-sector will get Tk 1.375 billion in the second instalment while the other sectors will receive the rest Tk 7.375 billion.
The 14 export earning sectors are -- apparel manufacturing industries, frozen foods and fish, leather products, finished leather, agro-based products, agro-processing industry, sugarcane waste, bone paste, potato, meat, poultry, hatchery egg, ship and bicycle.
Under the cash incentive programme, potato, halal meat and agro-products will get 20 per cent cash incentive.
The small and medium garment factories will get additional 5.0 per cent subsidy, while 2.0 per cent will be provided for new products and new market expansion except the USA, Canada and the EU.
The export-oriented textiles sector will get 5.0 per cent alternative cash incentives instead of customs bond and duty-drawback facility.
The products, which are made of elephant grass (hogla), paddy straw (khor) and sugarcane bark (akher chobra), will get cash incentive at the rate between 15 per cent and 20 per cent.
Exporters of bone dust and leather goods will get 15 per cent incentive, while pet bottle, flakes, finished jute goods, frozen foods and products of light engineering sector will get 10 per cent incentive.
Among the other sectors, jute yarn will get 7.5 per cent and ship export will get 5.0 per cent cash subsidy.
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