Dhaka, Bangladesh (BBN) – The government has announced a list of 14 exportable products — with some minor changes — that would receive cash subsidy in the current fiscal year (FY), officials said.
The exporters will receive cash subsidy on the products against net repatriation of the FOB (free on board) prices from July 1, 2014 to June 30, 2015, according to the announcement.
In this connection, the central bank of Bangladesh has issued a circular and asked the commercial banks to follow its provisions for providing cash subsidy for the exportable products.
"We've issued the circular in line with the decision of the ministry of finance (MoF) on cash subsidy for the fiscal year 2014-15," a senior official of the Bangladesh Bank (BB) told BBN in Dhaka.
"The rate of cash subsidies is almost the same for the current fiscal compared to that of the previous one," the central banker said.
The government has increased cash subsidy by 1.0 percentage point to 3.0 per cent from 2.0 per cent earlier for export of new textile products and expanding export of textile items to new markets other than US, Canada and European Union for FY15, he added.
The government earlier announced that it would provide 1.0 per cent more cash incentive in the ready-made garment (RMG) exporters to minimize their loss caused by the political unrest in the last year.
Besides, the export-oriented local textile sector will continue to get 5.0 per cent cash incentive as an alternative to duty bonds and duty drawbacks.
BBN/SSR/AD-04July14-11:06 am (BST)
