Bangladesh Bank announces 4.0pc subsidy on exporting bicycle, cement sheet, MS steel

Bangladesh Bank has announced a 4.0 per cent cash subsidy on exporting cement sheets, bicycles and their parts, MS steel and tea to encourage exporters.

The exporters of the specialised zone (BEZA, BEPZA and Hi-tech Park) will enjoy the facility under this programme, said central bank notification on Wednesday, reports UNB.

The exporters will get a 4.0 per cent subsidy for exporting products of which the local minimum value addition margin is not less than 30 per cent.

The subsidy would be provided on the basis of product shipment during fiscal 2021-22. The exporters would get the money from the authorized dealers (Ads) bank after submitting dues documents. They have to apply separately for separate chalan and shipment.

“All the products will be eligible to get the export subsidy when 30 per cent of them is made at the company’s own factory,” the circular stated.

The exporting firm or any individual can claim the cash benefit by submitting applications within 180 days of receiving the export proceeds in the Nostro accounts.

At present, some 38 locally-produced items have been getting 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.

Economists believe that the latest initiative will help increase the export volume of Bangladesh.

But they said the desired target would not be achieved without a fair distribution method of an export cash subsidy.