The government is considering increasing the rate of cash incentive to 10 per cent for exporting PET bottle flakes for the current fiscal year (FY) 2018-19 to help protect the industry, sources said.
The sector is now enjoying 5.0 per cent cash incentive while the rate was 10 per cent in the last FY.
The government decreased the cash incentive rate for the FY 2018-19 as the items were not exported to China.
Currently, the PET bottle flex items are being exported to different countries, including China.
The government wants to reinstate cash incentive like in the last FY to 10 per cent from 5.0 per cent for the sake of development of the industry, an official of the Ministry of Commerce said.
Some 27 export-oriented sectors enjoyed export subsidy or cash incentive facilities in the FY 2017-18.
For the FY '19, the government earmarked Tk 45 billion as cash incentive/subsidy for the country's export-oriented sectors, according to a ministry official.
The amount was same for the last fiscal year, according to ministry data.
In the FY '19, export-oriented sectors enjoyed cash incentives from 2.0 per cent to 20 per cent.
Bangladesh earned US$ 36.66 billion in foreign exchange in the FY 2017-18.
It earned total US$ 34.65 billion in the FY '17, US$ 34.10 billion in the FY '16, US$ 31.20 billion in the FY '15, US$ 30.18 billion in the FY '14 and US$ 27.02 billion in the FY '13 through export.
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