Dhaka, Bangladesh (BBN) – Bangladesh government has announced a new list of 13 exportable products that would receive cash subsidy, officials said.
The exporters will receive cash subsidy on the products against net repatriation of the FoB (free on board) prices from July 1, 2008 to June 30, 2009, they added.
“The rate of cash incentives is almost the same for this fiscal compared to the previous one,” a senior official of the Bangladesh Bank (BB), the country’s central bank, told BBN in Dhaka on Saturday, adding that the government has dropped tobacco from the new list.
The central bank has already issued a circular in this connection and asked the commercial banks to follow the provisions for providing cash subsidy on the exportable products.
“We have issued the circular in line with the government decision,” another BB official said, adding that the central bank is monitoring the overall disbursement process of the subsidy to the exporters.
He also said the banks will have to comply with the existing provisions properly to pay such subsidy money to the exporters.
The government will provide 20 per cent cash incentive for exporting agro-products, including vegetables and fruits, while it is 15 per cent 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 growth of the sector.
Cash subsidy on home made textile, frozen foods, bone dust, jute goods, potato, bicycle, light engineering products, day-old chicks and halal meat will be given at 5.0 per cent, 10 per cent, 15 per cent, 7.50 per cent, 10 per cent, 15 per cent, 10 per cent, 15 per cent and 20 per cent respectively.
The products, which are made of ‘hogla’, ‘khra’ and ‘akher chobra’, will be offered cash incentive at the rates between 15 and 20 per cent while 20 per cent for liquid glucose, the circular added.