Business News

Exports in 38 categories to enjoy cash incentive

The government on Monday announced cash incentives for the current fiscal year 2020-2021, keeping incentive against export of products under 38 categories announced for the fiscal year 2019-2020 unchanged.

On September 22 of FY20, the central bank issued a circular announcing cash subsidy against export of products under 37 categories.

Later on January 30 of the fiscal year, the BB issued another circular announcing 15 per cent cash incentive against export of rice.

Apart from the continuation of incentive for the sectors, the central bank’s circulars related to cash incentives would remain valid, said a BB circular issued in this regard on Monday.

‘It has been decided to issue cash incentive against products which would be shipped between July 1, 2020 and June 30, 2021 with a view to encourage export,’ the BB circular said.

The cash incentive at existing rate would remain intact against the export of products specified in the BB’s circular of September 22, 2019 and January 30, 2020, it said.

As per the Bangladesh Bank’s circular issued in September last year, an additional 1 per cent special incentive was applicable against export of readymade garment products.

Among others, incentive against export of consumer electronics, electrical home and kitchen appliances would remain intact along with a number of products manufactured in economic zones and hi-tech parks.

RMG exporters were enjoying 1-per cent additional special incentive in addition to the 4-per cent cash incentive against export of new textile and garment products and expanding export of textile items to new markets — markets other than the United States, Canada and the European Union.

Small and medium industries of the textile sector would get cash incentive at the rate of 4 per cent against export of apparel products.

The export-oriented local textile sector would enjoy cash incentive at the rate of 4 per cent as an alternative to duty bonds and duty drawbacks.

The 2-per cent cash incentive remained unchanged for exporters of apparel products to the Eurozone in FY21 as it was awarded in FY20.

Information technology-enabled services would get 15 per cent cash incentive and information technology companies established in hi-tech park would also get 4 per cent additional incentive for exporting products to new markets.

The 10-per cent cash incentive against export of elephant grass (hogla) and coconut coir would remain unchanged in FY21.

Exporters of pharmaceuticals, surgical instruments and appliances, photovoltaic modules, motorcycles, chemical products, razors and razor blades, ceramic products, caps, crabs, mud eels and galvanised sheets or coils would get 10 per cent cash incentive in FY21.

Cash incentives at the rate of 10 per cent would be applicable against export of intestines, horns and arteries (without bone), crust and finished leather goods to be produced at factories in the Tannery Park at Savar in Dhaka and at factories outside the Tannery Park which have their own effluent treatment plants.

Exports of ship, plastic products, pet flex and locally produced paper would be considered for 10 per cent cash incentives in FY21.

Exporters of frozen fish would get 5 per cent cash incentive for their products covered with ice weighing a maximum of 20 per cent of the total weight, 4 per cent cash incentive for products covered with ice weighing 20 per cent to 30 per cent of the weight, 3 per cent cash incentive for products covered with ice weighing 30 per cent to 40 per cent of the weight and 2 per cent cash incentive for products covered with ice weighing 40 per cent and above of the weight.

Exporters of shrimp will get 10 per cent cash incentive if their products are covered with ice weighing up to 20 per cent of the total weight.

The exporters will get 9 per cent cash incentive for their products which are covered with ice weighing 20 per cent to 30 per cent of the weight, 8 per cent cash incentive for products covered with ice weighing 30 per cent to 40 per cent of the weight and 7 per cent cash incentive for products covered with ice weighing 40 per cent and above of the weight.

Export of diversified jute products will get 20 per cent cash incentive, exports of jute yarn and twine would enjoy 7 per cent and that of jute hessian, sacking and carpet backing cloth would get 12 per cent incentive.

Cash incentive at the rate of 15 per cent for the export of leather goods, light engendering products, furniture, accumulator battery and shoes and bags made from synthetic fibres and fabric would be given in FY21.

Bangladeshi companies established in economic zones would get 4 per cent additional cash incentive for exporting shoes and bags made from synthetic fibres and fabric to new markets.

Incentive at the rate of 20 per cent for the export of charcoal, agricultural products, halal meat, potatoes and seeds would be applicable for FY21.

Source: New Age BD, 21.09.2020.

Link: https://www.newagebd.net/article/116914/exports-in-38-categories-to-enjoy-cash-incentive