Government revises export incentive rates for several sectors

The government has revised the rates of cash incentive on exports for several sectors, including apparels, for the current fiscal year.

Staff Correspondentbdnews24.com
Published : 13 July 2015, 05:00 PM
Updated : 13 July 2015, 05:00 PM

The central bank issued a circular to this effect on Monday.
 
The government extended cash incentive to 14 sectors to encourage exports.
 
According to Bangladesh Bank, exporters were given Tk 34 billion in cash incentive in the just concluded 2014-15 FY.
 
The circular says incentives have reduced from 15 percent to 5 percent on bone powder, from 15 percent to 12.5 percent in case of leather goods, from 10 percent to 7.5 percent on finished jute products, and from 7.5 percent to 5 percent on jute yarn.
 
However, light engineering goods will be getting 15 percent incentive this FY against 10 percent in the last FY.
 
The rate remains unchanged at 3 percent for new products in apparel sector and for exports to new markets, excluding the United States, Canada and European Union.
 
Additional incentive on small and medium industries in the apparel sector has been cut to 4 percent from 5 percent.
 
Incentives remain unchanged at 15-20 percent for goods made of elephant grass, paddy straw and sugarcane straw, 20 percent for vegetables, fruits, processed agriculture goods, Halal meat and potato, 10 percent for potato flakes and 5 percent for ships.
 
‘Diversified’ jute goods have been included this year in the list of products for cash incentives.
 
The government will give 10 percent cash incentive to exporters of the products on condition that at least 75 percent of their raw-materials comprise jute.
 
Cash incentive for frozen shrimp and other fish will be determined this year, for the first time in the country, based on the ice cover.
 
Exports of frozen shrimp will get 10 percent incentive if ice cover is up to 20 percent. The rate will be 9 percent, 8 percent and 7 percent if the ice cover is 20-30 percent, 30-40 percent and above 40 percent respectively.
 
For other frozen fish, the new rates are 5 percent, 4 percent, 3 percent and 2 percent respectively.
 
Last year, a flat 10 percent incentive was given for frozen fish.