The government has offered cash incentive to 14 export sectors in the new fiscal year, as it did in the past, with a view to making local exportable products competitive in the global market, official sources said.
The central bank issued a circular last week in line with the finance ministry’s decision on cash subsidy for the fiscal 2014-15 in which over 150 products under 14 export sectors would receive the cash insentive.
The circular issued by the Foreign Exchange Policy Department of BB said that exporters would receive cash subsidy on the products against net repatriation of the FOB (freight on board) prices from July 1, 2014 to June 30, 2015 for 14 category products.
The rate of cash incentive will range between 5.0 per cent and 20.0 per cent, according to the circular.
The government provided cash incentives to the same export sectors during the last fiscal also to promote the country’s export trade.
Under the cash incentive programme, potato, halal meat and agro-products will get the highest 20.0 per cent cash subsidy.
The small and medium garment factories will get additional 5.0 per cent subsidy, while 2.0 per cent will be provided for new products and new market expansion except USA, Canada and EU.
The export oriented textiles sector will get 5 per cent alternative cash incentives instead of customs bond and duty-drawback facility.
The products, which are made of elephant grass (hogla), paddy straw (khor) and sugarcane bark (akher chobra), will get cash incentive at the rate between 15.0 per cent and 20.0 per cent.
Exporters of bone dust and leather goods will get 15.0 per cent incentive, pet bottle, flakes, finished jute goods and products of light engineering sector will get 10.0 per cent.
Among the other sectors, frozen shrimp and jute yarn will get 7.5 per cent and ship export will get 5.0 per cent cash subsidy.
