Muhith sits next week to fix export subsidy rates

The government is set to revise the rates of cash incentive/subsidy on export for several export-oriented sectors, including readymade garment (RMG), for the current fiscal year (FY), officials said.
In this regard, Finance Minister A M A Muhith is going to sit with top officials concerned next week. Commerce Minister Tofail Ahmed might attend the meeting, they added.
"Some new potential export items may be included in the incentive list for FY 2016-17, and some may be excluded," a senior official of Ministry of Finance told the FE on Monday.
Some non-traditional export items, having significant market potential, may also be included in the new list.
Besides, the existing rates of cash incentive/subsidy will be reviewed and re-fixed for the ongoing FY, he mentioned.
According to Bangladesh Bank, allocation as cash incentive/subsidy has been fixed at Tk 45 billion for this fiscal. It was Tk 35 billion and Tk 34 billion in FY 2015-16 and FY 2014-15 respectively.
A number of export-oriented sectors and items, including textile and apparel, frozen fish, leather goods, agro­based products and agro­processing industry, halal meat, bone paste, potato, light engineering, shipbuilding and pet bottle flakes, have received cash incentive in the just concluded FY, 2015-16.
Some 19 sectors enjoy the incentive, varying from 2.0 per cent to 20 per cent rates.
Of these, bone-powder export gets 5.0 per cent cash incentive, leather goods 15 per cent, finished jute products 7.5 per cent, jute yarn 5.0 per cent, and light engineering goods 15 per cent.
Besides, exporters of apparel items to new markets, excluding the United States, Canada and the European Union, enjoy 3.0 per cent cash incentive. Small and medium enterprises (SMEs), which export apparels, get 4.0 per cent.
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 20 per cent, and ship exporters get 5.0 per cent cash incentive.
Diversified jute goods enjoy 10 per cent incentive, frozen shrimp from 7.0 per cent to 10 per cent on various conditions, and other frozen fish exports get 2.0 to 5.0 per cent.
Furniture sector gets 15 per cent cash benefit, plastic goods 10 per cent, crop seeds 20 per cent, and jute stick carbon products 10 per cent.
Besides, exporters of apparel products to Euro zone get 2.0 per cent cash incentive, following price slump of Euro against Taka.
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