Four more products will receive cash incentives against export, says BB

Four more products will get cash incentives from the government against their exports, according to the central bank.

The new products, each of which will receive the cash support at the rate of 4.0 per cent over their export value, are locally produced tea, bicycle and its parts, MS Steel products and cement sheet, said a Bangladesh Bank (BB) circular, issued by foreign exchange policy department on Monday.

The exporting firm or any individual can claim the incentives by submitting one or more applications within 360 days of receiving the export value, reports UNB.

However, the normal system of submitting the audit reports will be applicable in this regard. The new order will be effective from fiscal 21-22. In this case, each of the product's local value addition has to be a minimum of 30 per cent.

At present, some 38 items of local products have been receiving the cash incentives against the export at different rates one per cent to the highest 20 per cent. The current incentives for these items will continue.

The BB circular also mentioned that cash incentives will also be provided for the export of the products produced in the export processing zones, economic zones and hi-tech parks under A, B and C categories.

Besides, cash incentives at the rate of 4.0 per cent will be provided for export of IT services and software by individual freelancers. But their claim has to be authenticated by the Department of Information and Communication Technology and freelancers need to have government certificates.

Apart from this, float glass sheet, opal glass wire, cast iron and aluminium engineering products, and light engineering products will be considered for export subsidy. As well as high-tech products (compressors) and HCFC-free refrigerators as electronic products will receive export subsidies under the consumer electronics, electrical home and kitchen appliance sectors.