Govt releases Tk 5b in cash incentives for exporters

The government has released Tk 5 billion in cash incentives to support the country's exporters. This is the second tranche of the first installment for the 2025-26 fiscal year.

Earlier, Tk 10 billion was provided as the first tranche of the first installment for the current fiscal year, sources said.

The Ministry of Finance (MoF) recently issued an order for the disbursement, which was followed by the Office of the Controller General of Accounts issuing a debit authority in favour of the central bank.

The cash incentives will be distributed among eligible exporters through designated banks. The banks, however, are prohibited from utilising the funds for any other purposes, according to the ministry's order. The ministry has also cautioned that legal action will be taken against any banks or exporters found violating the rules and provisions related to the disbursement of the incentives.

The Bangladesh Bank (BB) will provide the necessary funds to the respective banks to facilitate the distribution to exporters based on their requirements.

The cash incentive programme continues to cover key export-oriented sectors, including ready-made garments, frozen shrimp and fish, leather goods, and jute products, as the government had earlier extended the export incentive scheme to 43 sectors for the first half of FY 2025-26, from July 1 to December 31. According to a BB circular, the cash incentive rates range from 0.30 per cent to 10 per cent for various categories of exportable goods.

According to the circular, the highest rate of 10 per cent cash incentives has been fixed for exports of vegetables, fruits, and processed agricultural produce, diversified jute products, 'halal' meat and meat products, accumulator batteries, leather products, potato peels, and light- engineering products.

rezamumu@gmai.com