Four new export items to get 4% cash incentive

The government has decided to provide a 4 per cent cash incentive against exports of four new product categories, including local tea and cement sheets, for the current fiscal year.

The two other categories are bicycles and their parts, and MS steel products.

The Bangladesh Bank made the incentive announcement in a circular on Monday.

It said the existing 38 export product categories would keep enjoying cash incentives in line with the previous directives.

The government provided cash incentives of 1-20 per cent for all exporters in the last financial year, and the facility would continue this year, the circular said.

Cash assistance will be provided for exporters in Export Processing Zones (EPZs), Economic Zones (EZs), and hi-tech parks. But only 100 per cent local companies will get this incentive.

A 4 per cent cash incentive will be provided for footwear, bag, and agro processing product exporters having type-C local industries in EZs.

All other industries in EZs will get a 1 per cent cash incentive.

Individual freelancers exporting ICT services will enjoy a 4 per cent cash incentive in this fiscal year.

Moreover, float glass sheet, opal glassware, cast iron, and aluminium engineering product exporters will enjoy the incentive currently provided for the light engineering sector.

High-technology products (compressors) and HCFC-free refrigerator exporters will also get cash incentives.

The circular said all exporters would get cash incentives for 30 per cent value addition to their goods.

The government provided the existing subsidies or cash incentives to encourage export trade and promote new sectors.