Govt to release fourth tranche of Tk 13.75b cash incentives to exporters

The Bangladesh ministry of finance has advised the Chief Accounts Officer of the Finance Division on Thursday to release the funds in favour of the central bank to hand over the cash incentives to the exporters for a period from April 2015 to July 2015.

This will be the last and fourth tranche of cash incentives amounting to Tk 13.75 billion for major exporters for the current fiscal year by the government.

The local exporters have been advised to seek the cash by applying to the Bangladesh Bank through respective banks. They will receive the instalment of the cash incentives against their exports during the period.

The sectors enjoying the benefits includes apparel-manufacturing industries. The small and medium garment factories will get an additional 5.0 per cent subsidy, while 2.0 per cent will be provided for new products and new market expansion except the USA, Canada and the EU.

The export-oriented textiles sector will get 5.0 per cent alternative cash incentives instead of customs bond and duty-drawback facility. While, exporters of finished jute goods and products of light-engineering sector will get 10.0 per cent..

Of the Tk 13.75 billion, the jute and jute-product sub-sector will get Tk 2.875 billion in the fourth instalment while the other sectors will receive the rest (Tk 10.875 billion).

As per the circular, the government will take legal actions against the exporters who, after examining export documents, would be found enjoying extra cash incentives from banks. The extra funds will be taken back from the exporters within a short time through legal process.

Earlier, Bangladesh Bank (BB) demanded an additional amount of Tk 26 billion mainly to pay out the instalment of cash incentives as well as arrears for current fiscal (2014-15) to the major exporters. At present, about 14 export sectors are receiving the cash bonus on exports.