Bangladesh: More export items to get cash incentive

DHAKA (The Daily Star/ANN) - The finance ministry awarded 15 percent cash incentive to accumulator battery, shoe, and goods made of coconut fibre, and 10 percent to ICT products.

Bangladesh government has expanded the list of exporters eligible for cash incentive by granting the facility to some nontraditional goods in order to boost overseas shipments.

The finance ministry awarded 15 percent cash incentive to accumulator battery, shoe, and goods made of coconut fibre, and 10 percent to ICT products.

The central bank issued a notice to this effect on Thursday. The incentive will be retrospectively effective from July 2017 to June 2018, according to the notice.

The exporters of the newly included products will have to apply within 60 days of the issuance of the circular to enjoy the benefit. 

Locally made accumulator batteries will qualify for the incentive, but those produced in export processing zones and economic zones will not come under the purview of the facility.

Shoes made of a mix of synthetic and fabrics in exporters' own factories will get the cash subsidy.  The products should have a minimum 30 percent local value addition and will not enjoy duty drawback and duty-free benefits, according to the notice. Incentives will also be given for export of products made of coconut fibre.

At present, products made from hogla, straw and sugarcane fibre enjoy 15 percent subsidy.

Besides, the apparel sector gets 5 percent cash incentive for exporting goods to traditional destinations like the US, Canada and the European Union. The rate is 8 percent for new markets. In total, 27 export-oriented sectors enjoy cash incentive. The government plans to give Tk 4,500 crore in cash incentive to the export-oriented sector in 2017-18.

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