• Saturday, Sep 21, 2019
  • Last Update : 03:34 am

11 more products to get export incentive

  • Published at 10:15 pm August 5th, 2019
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We need to diversify our export basket Bigstock

The incentive ranges between 10% and 20%

The government will give cash incentive against export receipts of 11 new products from this fiscal year, taking the total number of export-oriented products eligible for the handout to 46.

The decisions came on Monday at an annual review meeting held at the Ministry of Finance with finance minister AHM Mustafa Kamal in the chair.

The incentive ranges between 10% and 20%.

The new products include medical instruments and appliances, cattle tripe and horn, particle board made of jute stick, handicrafts made of garment waste (jhute), products made from nut leaf (Suparir pata), chemicals and agro-processing products exported from Bangladeshi-owned firms at Export Processing Zones and synthetic products produced in Hi-Tech parks.

Besides, local engineering and hi-tech manufacturer Walton's home appliance will also enjoy export incentive.

“We have decided to give cash incentive to a few new products from this fiscal year,” Finance Division Secretary Abdur Rouf Talukder told reporters after the meeting.

He said the government's target was to achieve 8.2% growth in gross domestic product (GDP) this fiscal and the initiative of widening cash incentives to various sectors was aimed to achieve the target.

He said the government wanted to create employment in the country by facilitating private sector entrepreneurs with various privileges.

In the government’s cash incentive scheme, the textile and clothing sector appeared to be the major recipient, with an additional cost of Tk2,825 crore.

Rouf said the apparel exporters would receive 1% cash incentive for overall export barring to export in non-traditional markets.

"New announcement for textile and clothing industry will cover those which did not receive any incentives before and it will require additional Tk 2825 crore," he said.

The government's current cost against cash incentives is around Tk3,000 crore, according to budget for FY20.

The finance secretary said the government thought that the incentives would bring much higher benefit for the country by generating employment as entrepreneurs might consider fresh investment.    

He said the limit of export income entitled to cash incentives was raised from $ 3.5 million to $ 5 million for small and medium entrepreneurs of textile and clothing industry. 

"Besides, we have approved new proposal for inclusion of vest in cash incentives scheme," he said.

Furthermore, the finance division secretary said the existing ceiling of export receipts was raised from $ 3.5 million to $ 5 million for small and medium entrepreneurs of textile and clothing industry.