Bangladesh provides cash incentive for more exportable products

Last updated: November 28, 2016

Dhaka, Bangladesh (BBN)- Bangladesh government has included a few more exportable products in its cash incentive list for the ongoing fiscal year (FY) 2016-17 to facilitate the products.
Cash subsidy for products – Auger and Atar, and locally-produced paper and paper products – have been fixed at 20 per cent and 10 per cent respectively, according to separate notifications, issued by the Bangladesh Bank (BB), the country’s central bank, on Sunday.
Besides, the exporters of intestines, horns and tendons of cow and buffalo will also get 10 per cent cash subsidy during the period under review, according to the notification.
Under the notifications, the exporters of intestines, horns and tendons of cow and buffalo will receive cash subsidy on the products against net repatriation of the FOB (free-on-board) prices from July 1, 2016 to June 30, 2017.
On the other hand, the exporters of Auger and Atar and locally-produced paper and paper products will receive cash subsidy on the products against net repatriation of the FOB prices from November 27, 2016 to June 30, 2017.
“We’ve issued the circulars in line with the decision of the ministry of finance (MoF) on cash subsidy for the products,” a BB senior official told BBN in Dhaka.
He also said that such cash incentive will help increase exports of the products in the coming months.

Earlier on September 17 this calendar, the government announced a list of 20 exportable products that are eligible for receiving cash subsidy in the FY 17.
Under the announcement, the government will provide 10 per cent cash incentive for export of intestines, horns and arteries (without bone), 20 per cent for seeds, 20 per cent for charcoal, 15 per cent for furniture and 10 per cent for plastic goods for fiscal year 2016-17.
The exporters of light engineering products, crust and finished leather goods to be produced at the Tannery Park at Savar, apparel products, leather goods, ship, diversified jute products, jute spin, potato, shrimp, frozen fish, light engineering products, handmade products from hogla, hay and sugarcane fibre, agro products (vegetables and fruits) and agro-processing products, halal meat and pet bottle-flex will also enjoy the cash incentive for the FY 17.
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