Process on to revise rates of cash incentives on frozen shrimp export

Rezaul Karim | Published: November 16, 2015 00:00:00 | Updated: November 30, 2024 06:01:00

A process to revise the rates of cash incentives on export of frozen shrimp is underway aiming to boost export earnings from the sector, officials said.
"The government is considering revising the rates of cash incentives on export of the country's frozen shrimp which is now in the process," a senior official of the Ministry of Commerce (MoC) said.
In a recent meeting on cash incentives, the Bangladesh Frozen Foods Exporters Association (BFFEA) proposed fixing the rates of cash incentives on export of frozen shrimp on real invoice. "So, a process to revise the existing rates is under consideration which will be declared soon after getting approval from the authorities concerned," he added.
The MoC has already formed a committee, headed by its Additional Secretary (Export) Md Zahir Uddin Ahmed, to re- evaluate the list of existing incentives/subsidies being provided to the country's some exportable items by the government, sources said.
The committee will take necessary steps to re-examine incentive/subsidy facilities for the country's exportable items, including those of potential export sectors. The review committee will submit a report to the authority along with required suggestions.Â Â
"The government has formed a review committee to re-evaluate the list of existing incentive/subsidy facilities. It will also include any potential export items in the list in future," a member of the committee told the FE on Saturday.Â Â Â Â
According to the circular of the BB on July 13, 2015, exports of frozen shrimp will get 10 per cent incentive if ice cover is up to 20 per cent. The rate will be 9 per cent, 8 per cent and 7 per cent if ice cover is 20-30 per cent, 30-40 per cent and above 40 per cent respectively.
For other frozen fish, new rates are 5 per cent, 4 per cent, 3 per cent and 2 per cent respectively, the circular mentioned.
"We have requested the government to provide cash incentives on actual invoice of export of our frozen shrimp," BFFEA president S. M. Amzad Hossain told the FE on Saturday.
Currently, the government is providing cash incentives to the country's 14 sectors to encourage exports, including textiles and apparel, frozen fish, leather products, agro-based products and agro-processing industry, halal meat, bone paste, potato, light engineering, ship and pet bottle flakes are receiving cash incentives. Â
Earnings from shipment of frozen food and live fish dropped by 26.16 per cent to $ 350.14 million in the first four months of the current fiscal year compared to the same period of last fiscal.
In the current fiscal year (FY), the government has decided to release a total of Tk 35.00 billion as cash incentives, according to the Export Promotion Bureau (EPB).
In FY 2014-15, the government allocated Tk 34.0 billion for 14 export sectors, according to the BB. Â Â Â Â Â Â
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