The government on Sunday announced cash incentives against export of products under 37 categories, including one percent additional special incentive for readymade garment products, for the current fiscal year of 2019-20.
The government also included consumer electronics, electrical home and kitchen appliances to the product list for the first time with 10 percent cash incentive and boosted incentives for a number of products manufactured in economic zones and hi-tech parks.
According to a Bangladesh Bank circular issued on Sunday, readymade garment exporters would get one per cent additional special incentive in addition to the 4 per centcash incentive remained unchanged for this fiscal year for export of new textile and garment products and expanding export of textile items to new markets — markets other than the United States, Canada and the European Union.
The government kept unchanged the cash incentive at 4 percent for apparel products export for the small and medium industries of the textile sector.
According to the circular, the export-oriented local textile sector would enjoy cash incentive at the rate of 4 percent as an alternative to duty bonds and duty drawbacks.
The 2-per cent cash incentive remained unchanged for the exporters of apparel products, who will export their products to the eurozone.
Information technology-enabled services would get 15 percent cash incentive and the information technology companies established in hi-tech park would also get 4 percent additional incentive for exporting products to new markets, the circular said.
In the circular, the government included bags with the item of shoes made from synthetic fibres, garment wastage with handicrafts (elephant grass and coconut coir) and surgical instruments and appliances with pharmaceuticals.
The government reduced cash incentive for exporting elephant grass (hogla) and coconut coir to 10 percent from 20 per cent for FY20.
Exporters of pharmaceuticals and surgical instruments and appliances, photovoltaic modules, motorcycles, chemical products, razors and razor blades, ceramic products, caps, crabs, mud eels and galvanised sheets/coils would get 10 percent cash incentive in FY20.
The government kept unchanged the cash incentive at 10 per cent for export of intestines, horns and arteries (without bone), crust and finished leather goods to be produced at the factories in the Tannery Park at Savar in Dhaka and outside the Tannery Park, which have their own effluent treatment plants.
The 10-percent cash incentive also remained unchanged for the export of ship, plastic products, pet flex and locally produced paper for FY20.
The BB circular said that the exporters of frozen fish would get 5 per cent cash incentive for their products covered with ice weighing maximum 20 per cent of the total weight, 4 per cent cash incentive for products covered with ice weighing 20 per cent to 30 per cent of the weight, 3 per cent cash incentive for products covered with ice weighing 30 per cent to 40 per cent of the weight and 2 per cent cash incentive for products covered with ice weighing 40 per cent and above of the weight.
The exporters of shrimp will get 10 per cent cash incentive if their products are covered with ice weighing up to 20 per cent of the total weight.
The exporters will get 9 per cent cash incentive for their products which are covered with ice weighing 20 per cent to 30 per cent of the weight, 8 per cent cash incentive for products covered with ice weighing 30 per cent to 40 per cent of the weight and 7 per cent cash incentive for products covered with ice weighing 40 per cent and above of the weight.
The 20-per cent cash incentive the diversified jute products enjoyed in the previous fiscal year remained unchanged for this fiscal year, while the incentive for export of jute yearn and twine remained seven per cent and the incentive for jute hessian, sacking and carpet backing cloths also remained 12 per cent.
The government kept unchanged cash incentive at 15 per cent for the export of leather goods, light engendering products, furniture, accumulator battery and shoes and bags made from synthetic fibres and fabric.
Bangladeshi companies established in economic zones would get 4 per cent additional cash incentive for exporting shoes and bags made from synthetic fibres and fabric to new markets.
The government also kept unchanged 20 per cent cash incentive for the export of charcoal, agricultural products, halal meat, potatoes and seeds for FY20.
Disclaimer: The original publisher, as mentioned above, holds the responsibility for the copyright of the content.