Bangladesh govt revises cash incentive rates for several sectors to boost exports

The Bangladesh government has reworked on cash incentive rate for 14 sectors including apparel to encourage exports during the current fiscal year. The central bank issued a circular to this effect on Monday. According to Bangladesh Bank, exporters were given Tk 34 billion in cash incentive in the just concluded 2014-15 FY.

The circular states that incentives have reduced on finished jute products from 10 percent to 7.5 percent, on jute yarn from 7.5 percent to 5 percent and in case of leather goods from 15 percent to 12.5 percent.

The rate remains unchanged at 3 percent for new products in apparel sector and for exports to new markets, excluding the United States, Canada and European Union.

Additional incentive on small and medium industries in the apparel sector has been cut to 4 percent from 5 percent.

Incentives remain unchanged at 15-20 percent for goods made of elephant grass, paddy straw and sugarcane straw.
Diversified’ jute goods have been included this year in the list of products for cash incentives.

The government will give 10 percent cash incentive to exporters of the products on condition that at least 75 percent of their raw-materials comprise jute.

However, light engineering goods will be getting 15 percent incentive this FY against 10 percent in the last FY.