Tobacco dropped from list of export items entitled to cash subsidy

FE Report brThe government has announced a new list of 13 export items that would receive cash subsidy for the current fiscal. Tobacco has not been included in the list. brThe exporters will receive cash subsidy on the products against net repatriation of the FoB (free on board) prices from July 1, 2008 to June 30, 2009, officials said. brThe central bank has already issued a circular in this connection and asked the commercial banks to follow the provisions for providing cash subsidy on the export items. brWe have issued the circular in line with the government decision, a senior official of the Bangladesh Bank (BB) told the FE, adding that the central bank is monitoring the overall disbursement process of the subsidy to the exporters. brHe also said the banks will have to comply with the existing provisions properly to pay such subsidy money to the exporters.brThe government will provide 20 per cent cash incentive for exporting agro-products, including vegetables and fruits, while it is 15 per cent for leather goods, according to the BB circular. brThe agriculture sector has already been identified as a priority sector to alleviate poverty through creation of employment opportunities in the rural areas. The government has taken a series of steps to facilitate growth of the sector. brCash subsidy on home made textile, frozen foods, bone dust, jute goods, potato, bicycle, light engineering products, day-old chicks and halal meat will be given at 5.0 per cent, 10 per cent, 15 per cent, 7.50 per cent, 10 per cent, 15 per cent, 10 per cent, 15 per cent and 20 per cent respectively. brThe products, which are made of 'hogla', 'khra' and 'akher chobra', will be offered cash incentive at the rates between 15 and 20 per cent while 20 per cent for liquid glucose. brThe rate of cash incentives is almost the same for this fiscal compared to the previous one, another BB official said, adding that the government has dropped tobacco from the new list.