New exportables up for cash incentives

Rezaul Karim | Published: July 14, 2018 10:29:33 | Updated: July 17, 2018 10:19:11


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New eligible traditional and non-traditional export items are going to get cash incentive/subsidy this fiscal year (FY), 2018-19, sources said.

The government has made the initiative to bring new potential and diversified items under the facility with an intent to boost its export basket, they added.

Some 27 export-oriented sectors enjoyed export subsidy or cash incentive in last FY.

The authorities will review the same for the existing sectors and also consider proposals and recommendations for new sectors for FY '19.

When asked, finance division secretary Mohammad Muslim Chowdhury said the date for a meeting to this end is yet to be set.

It may take place anytime this month, he added.

Mr Chowdhury said new exportables may get the cash/subsidy facilities for the current FY.

He, however, did not disclose the number of new items tipped for the package.

Five to 10 exportables like razor and razor blades, chlorine, hydrochloric acid, caustic soda, hydrogen peroxide and motorcycle may get the facility, an official of commerce ministry said.

The incentive/subsidy rates for jute and jute goods, leather and leather goods, new products and new market expansion facility may remain unchanged, he added.

Same is the case for small and medium garment factories and textiles sector, the official stated.

The rates for frozen shrimp and fish will also remain unchanged.

To this end, Mr Chowdhury recently submitted a proposal to the finance minister and sought a date for an inter-ministerial meeting.

For FY '19, the government earmarked some Tk 45 billion as cash incentives/subsidy for the country's export-oriented sectors, according to a ministry official.

The amount was same for last FY, according to ministry data.

In last FY, export-oriented sectors enjoyed cash incentives from 2.0 per cent to 20 per cent.

Diversified jute products, halal meat, potato, active pharmaceutical ingredients, agri-products, handicrafts made of elephant grass (hogla), paddy straw and sugarcane bark, agor and ator, vegetable seeds, jute stick-produced carbon, products made from coconut husk got the highest 20 per cent incentive.

The small and medium garment factories got an additional 4.0 per cent subsidy.

Meanwhile, new products and new market expansion, excepting the United States, Canada and the European Union, got 3.0 per cent incentive.

The export-oriented local textile sector enjoyed 4.0 per cent alternative cash incentive instead of customs bond and duty-drawback facility.

The exporters of apparel for the European region got an additional special support other than the cash subsidy.

Leather goods, light engineering products and furniture got 15 per cent incentive, PET bottle flakes and finished jute goods got 10 per cent cash incentive/subsidy respectively.

The rate for PET bottle flakes may be reduced to 0.5 per cent from existing 10 per cent this FY for a temporary Chinese ban on its import.

The commerce ministry proposed a 10 per cent cash incentive against the export of polyester staple fibre.

Among other sectors, frozen shrimp and jute yarn got 10 per cent and 0.5 per cent incentive/subsidy. Ship exports got 10 per cent cash subsidy.

The Export Promotion Bureau has sent to commerce ministry a draft export target proposal at $45 billion (goods and service) this FY.

Bangladesh earned $34.65 billion in FY '17, $34.10 billion in FY '16, $31.20 billion in FY '15, $30.18 billion in FY '14 and $27.02 billion in FY '13 through exports.

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