Dhaka, Bangladesh (BBN)- The government has announced a fresh list of 15 exportable products with inclusion of two new items that would receive cash subsidy in the current fiscal year, officials said.
The exporters will receive cash subsidy on the products against net repatriation of the FOB (free on board) prices from July 1, 2009 to June 30, 2010, according to the announcement.
The central bank of Bangladesh issued a circular in this connection Tuesday and asked the commercial banks to follow the provisions for providing cash subsidy on the exportable products.
“We’ve issued the circular in line with the finance ministry’s decision on cash subsidy for the fiscal 2009-10,” a senior official of the Bangladesh Bank (BB) said, adding that the banks will have to comply with the existing provisions properly to pay subsidy money to the exporters.
“The rate of cash subsidies is almost the same for this fiscal compared to the previous one,” the official said, adding that the government has included two products – plastic pet bottle flex and finished leather – in the list, which will enjoy cash subsidies at 10 per cent and 7.50 per cent respectively from this fiscal.
The government will provide 20 percent cash incentive for exporting agro-products, including vegetables and fruits, while it is 17.50 percent for leather goods, according to the BB circular.
The agriculture sector has already been identified as a priority sector to alleviate poverty through creation of employment opportunities in the rural areas. The government has taken a series of steps to facilitate optimum growth of the sector.
Cash subsidy on home-made textile, frozen foods, bone dust, jute goods, bicycle, light-engineering products, day-old chicks, potato and ‘halal’ meat will be given at 5.0 percent, 12.50 percent, 15 percent, 10 percent, 15 percent, 10 percent, 15 percent, 10 percent and 20 percent respectively.
The products, which are made of ‘hogla’, ‘khor’ and ‘akher chobra’, will be offered cash incentive at the rates between 15 per cent and 20 per cent, while 20 per cent for liquid glucose, the circular added.
BBN/SS/SI/AD-09September09-3:36 am (BST)