Tk 9.0b cash incentives released for exporters
Wednesday, 20 January 2010
Monira Munni
The government released cash incentives worth Tk 9.0 billion for disbursement among major exporters, officials said.
The finance ministry issued a letter last week asking the central bank for releasing the cash incentives to the exporters.
Among the major export-earning sector, the ready-made garments (RMG) sector will get Tk 4.48 billion, followed by frozen foods Tk 1.70 billion.
Agro-products will get Tk 210 million, agro-processing sector Tk 290 million and leather goods Tk 740 million.
Jute exporters have already received Tk 1.50 billion from the budget allocation of Tk 3.0 billion and the remaining Tk 1.50 billion will be distributed from the Tk 9.0 billion cash support.
Rest of the Tk 9.0 billion will be disbursed to other sectors including handicrafts, potato, bone dust, halal meat, hatching egg etc.
In the current fiscal budget, finance minister AMA Muhith has announced to offer a stimulus package worth Tk 50 billion to salvage the recession hit sectors.
Included in the amount is an allocation of Tk 15 billion against export of goods out of which Tk 7.50 billion had been released in the first installment.
Sources said the leading exporters will be able to overcome their financial constraints as the government has taken steps for early disbursement of the cash incentives allocated for the current fiscal.
The government has introduced the cash incentives for the leading export earners to help them stay competitive in the international market.
Cash subsidy on home-made textile, frozen foods, bone dust, jute goods, bicycle, light-engineering products, day-old chicks, potato and 'halal' meat will be given at 5.0 per cent, 12.50 per cent, 15 per cent, 10 per cent, 15 per cent, 10 per cent, 15 per cent, 10 per cent and 20 per cent respectively.
The products, which are made of 'hogla', 'khor' and 'akher chobra', will be offered cash incentive at rates between 15 per cent and 20 per cent, and 20 per cent for liquid glucose.
The government has included two products - plastic pet bottle flakes and finished leather - in the list for the first time, which will enjoy cash subsidies at 10 per cent and 7.50 per cent respectively from this fiscal.
The government has set an ambitious $17.6 billion export target for the current fiscal year despite fears of major exporters and multilateral agencies that shipments would be hit by global downturn.
The government has set the target, which sees a robust 13 per cent or more than two billion dollars increase in shipment from the exports of $15.56 billion registered in the 2008-9 fiscal year.
Export earnings in the period of July- November of 2009-10 was $ 6097 million falling short of target by $11.50 billion. The target was set at $17.6 billion.
Bangladesh's earnings from merchandise exports fell short of target by 6.93 per cent over the corresponding period of the last fiscal.
The government released cash incentives worth Tk 9.0 billion for disbursement among major exporters, officials said.
The finance ministry issued a letter last week asking the central bank for releasing the cash incentives to the exporters.
Among the major export-earning sector, the ready-made garments (RMG) sector will get Tk 4.48 billion, followed by frozen foods Tk 1.70 billion.
Agro-products will get Tk 210 million, agro-processing sector Tk 290 million and leather goods Tk 740 million.
Jute exporters have already received Tk 1.50 billion from the budget allocation of Tk 3.0 billion and the remaining Tk 1.50 billion will be distributed from the Tk 9.0 billion cash support.
Rest of the Tk 9.0 billion will be disbursed to other sectors including handicrafts, potato, bone dust, halal meat, hatching egg etc.
In the current fiscal budget, finance minister AMA Muhith has announced to offer a stimulus package worth Tk 50 billion to salvage the recession hit sectors.
Included in the amount is an allocation of Tk 15 billion against export of goods out of which Tk 7.50 billion had been released in the first installment.
Sources said the leading exporters will be able to overcome their financial constraints as the government has taken steps for early disbursement of the cash incentives allocated for the current fiscal.
The government has introduced the cash incentives for the leading export earners to help them stay competitive in the international market.
Cash subsidy on home-made textile, frozen foods, bone dust, jute goods, bicycle, light-engineering products, day-old chicks, potato and 'halal' meat will be given at 5.0 per cent, 12.50 per cent, 15 per cent, 10 per cent, 15 per cent, 10 per cent, 15 per cent, 10 per cent and 20 per cent respectively.
The products, which are made of 'hogla', 'khor' and 'akher chobra', will be offered cash incentive at rates between 15 per cent and 20 per cent, and 20 per cent for liquid glucose.
The government has included two products - plastic pet bottle flakes and finished leather - in the list for the first time, which will enjoy cash subsidies at 10 per cent and 7.50 per cent respectively from this fiscal.
The government has set an ambitious $17.6 billion export target for the current fiscal year despite fears of major exporters and multilateral agencies that shipments would be hit by global downturn.
The government has set the target, which sees a robust 13 per cent or more than two billion dollars increase in shipment from the exports of $15.56 billion registered in the 2008-9 fiscal year.
Export earnings in the period of July- November of 2009-10 was $ 6097 million falling short of target by $11.50 billion. The target was set at $17.6 billion.
Bangladesh's earnings from merchandise exports fell short of target by 6.93 per cent over the corresponding period of the last fiscal.