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10% cash incentive for detergent, melamine exports recommended 

Hasan Arif
26 Jan 2022 00:00:00 | Update: 26 Jan 2022 00:02:06
10% cash incentive for detergent, melamine exports recommended 

Aiming to boost the export industry, the commerce ministry recently recommended 10 per cent cash incentive for exports of detergent and melamine products.

It recently sent a letter to the finance ministry seeking approval for the incentive.

Besides, steps have been taken to reduce complications about getting cash incentives for exports of plastic products, said ministry sources.

Earlier, a proposal for 20 per cent cash incentive for exports of disinfectant, pesticide, detergent, and cleaning products was made in an inter-ministerial meeting presided by Additional Secretary (export) of the commerce ministry Md Hafizur Rahman. Considering the production and export costs, disinfectant, pesticide, detergent, and cleaning products do not require any stimulus, said Bangladesh Trade and Tariff Commission.

Yet, the commission recommended 10 per cent cash incentive for detergent export while in case of cash incentive for Melamine products, it has asked to follow the Bangladesh Bank circular.

On the other hand, exporters of plastic goods and PET bottle flakes will get the stimulus after showing their membership of Bangladesh Plastic Goods Manufacturers and Exporters Association (BPGMEA).

Currently, member companies of the association are involved in plastic goods production and export while some of them also produce and export PET bottle flakes.   

The government provides 10 per cent cash incentive for plastic and PET bottle flakes exports but for getting the incentive, the plastic exporter and BPGMEA member companies would also have to become members of PET Bottle Flakes Manufacturers and Exporters Association, according to the Bangladesh Bank circular.

A total of 42 companies will get a minimum of 2 per cent to a maximum of 20 per cent cash incentives. For this, Tk 7,359 crore was allocated in the current FY 2021-22, marking 7.64 per cent hike from the previous year.

In the last fiscal year, Tk 6,828 crore was allocated for subsidies in the export sector.

According to the Export Promotion Bureau, in the FY 2020-21, the country exported detergent worth $1,66,088.44 and melamine worth $27,151.32.

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