Bangladesh: Cash incentives on textile exports to new markets increase to 3pc

Dhaka, July 4 (New Age): The government has increased the cash incentive to 3 per cent from 2 per cent for export of new textile products and expanding export of textile items to new markets other than US, Canada and European Union for financial year 2014-15. A Bangladesh Bank circular issued on Thursday said the cash incentive for textile exporters had been enhanced in line with a government decision to give additional incentive to the exporters from January 2014 to June 2015. The government earlier announced that it would provide additional 1 per cent cash incentive in textile export. The cash subsidy for other 13 sectors has not been changed for the FY 2014-15, the BB circular said. The BB circular was issued to authorised dealer branches of all the scheduled banks saying that 14 sectors would receive the cash subsidy against their exported products in the FY 2014-15 according to finance ministry decision on cash subsidy/incentives. According to the circular, exporters would receive cash subsidy for the products against net repatriation of the FOB (freight on board) prices from July 1, 2014 to June 30, 2015. The export-oriented local textile sector will continue to get 5 per cent cash incentive as an alternative to duty bonds and duty drawbacks. The exporters of shrimp would continue to 10 per cent cash incentive against their export while for the exporters of jute yarn will get 7.50 per cent. Exporters of handmade products from hogla, hay and sugarcane fibre will continue to receive 15 to 20 per cent, agro products (vegetables and fruits) and agro-processing products 20 per cent and bone dust will get 15 per cent cash incentives. Light engineering products will get 10 per cent cash incentive. Exporters of halal meat and potato will continue to receive 20 per cent incentive while ship exporters will get 5 per cent cash incentives. Exporters from small and medium industries in textiles sector will get an additional incentive of 5 per cent along with the regular incentive. Pet bottle-flex exporters will get 10 per cent incentive.