Bangladesh Govt to set new rates of export incentive, cash subsidy

Like in the last fiscal year, the goods and products under export categories will get cash incentive or subsidy against shipments during the current fiscal year.

The government is likely to sit tomorrow (Wednesday) to set new rates of cash incentive/subsidy and also re-fix the existing ones against export items for fiscal year 2018-19 (FY '19).

The meeting will be held at the Ministry of Finance, with Finance Minister AMA Muhith in the chair.

Commerce Minister Tofail Ahmed is likely to attend the meeting where other high officials concerned will also be present.

New traditional and non-traditional export items are going to get cash incentive/subsidy in the FY '19, sources said.

The government has taken the initiative to bring new potential and diversified items under the facility with the view to boosting the country's export basket, they said.

Some 27 export-oriented sectors enjoyed export subsidy or cash incentive facilities in fiscal year 2017-18.

A high official of the finance division said the new exportable items may get the facilities for the FY '19.

He, however, did not disclose the number of the new items tipped for the package.

Five to ten exportable items may get the facilities this year, an official of the commerce ministry said.

The incentive/subsidy rates for jute and jute goods, leather and leather goods, new products and new market expansion facility may remain unchanged, he said.

The same is the case with small and medium-sized garment factories and textiles sector, the official stated.

The rates for frozen shrimp and fish will also remain unchanged.

For FY '19, the government earmarked some Tk 45 billion as cash incentives/subsidy for the country's export-oriented sectors, according to a ministry official.

The amount was same for the last fiscal year, according to ministry data.

In the FY '18, export-oriented sectors enjoyed cash incentives from 2.0 per cent to 20 per cent.

Diversified jute products, halal meat, potato, active pharmaceutical ingredients, agri-products, handicraft made of elephant grass (hogla), paddy straw and sugarcane bark, agor and ator, vegetable seeds, carbon produced from jute sticks and products made from coconut husk got the highest 20 percent incentive.

The Export Promotion Bureau (EPB) has sent to the commerce ministry a $45 billion (goods and service) draft export target proposal for FY '19.

Bangladesh earned total of $34.65 billion in FY '17, $34.10 billion in FY '16, $31.20 billion in FY '15, $30.18 billion in FY '14 and $27.02 billion in FY '13 through exports.

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