Govt releases final instalment of export subsidy for FY '08
FE Report | Monday, 23 June 2008
The government Sunday released cash subsidy worth Tk 2.50 billion to the leading exporting sectors, which is the last instalment of the total allocation amounting to Tk 11 billion of the outgoing fiscal.
The finance ministry, through the Bangladesh Bank (BB) will disburse the fund to the exporters on the basis of their export value.
Among the major export-earning sectors, the ready-made garments (RMG) sector will receive Tk 1.26 billion followed by the frozen foods Tk 770 million and leather and leather goods Tk 250 million.
The actual audited due in terms of subsidy against total export of the RMG sector was Tk 2.08 billion while Tk 1.28 billion for frozen foods sector.
Exporters said the caretaker government this year has disbursed cash incentives in due time which helped them overcome, to some extent, the problems created by sluggish trend of export.
In the fiscal 2006-07, the total amount allocated for cash incentive was worth Tk 5.0 billion. The government allocated 120 per cent more cash subsidy this year to help the fast growing exporting sectors contribute more in the economy.
Exporters under 14 sectors are entitled to receive cash incentives against export of their products.
The government has introduced the cash incentives for the leading export earners to help them stay competitive in the international market.
The government set an export target of $14.50 billion in the current 2007-08 fiscal, which is an increase of 19.07 per cent over that of the export performance of the previous fiscal.
Bangladesh's export in the second and third quarters posted 4.42 per cent and 12.43 per cent growth respectively after 5.37 per cent negative growth in the first quarter.
The finance ministry, through the Bangladesh Bank (BB) will disburse the fund to the exporters on the basis of their export value.
Among the major export-earning sectors, the ready-made garments (RMG) sector will receive Tk 1.26 billion followed by the frozen foods Tk 770 million and leather and leather goods Tk 250 million.
The actual audited due in terms of subsidy against total export of the RMG sector was Tk 2.08 billion while Tk 1.28 billion for frozen foods sector.
Exporters said the caretaker government this year has disbursed cash incentives in due time which helped them overcome, to some extent, the problems created by sluggish trend of export.
In the fiscal 2006-07, the total amount allocated for cash incentive was worth Tk 5.0 billion. The government allocated 120 per cent more cash subsidy this year to help the fast growing exporting sectors contribute more in the economy.
Exporters under 14 sectors are entitled to receive cash incentives against export of their products.
The government has introduced the cash incentives for the leading export earners to help them stay competitive in the international market.
The government set an export target of $14.50 billion in the current 2007-08 fiscal, which is an increase of 19.07 per cent over that of the export performance of the previous fiscal.
Bangladesh's export in the second and third quarters posted 4.42 per cent and 12.43 per cent growth respectively after 5.37 per cent negative growth in the first quarter.