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Business Insider Bangladesh

4 new products among 38 to get export subsidies

BI Report || BusinessInsider

Published: 00:05, 21 September 2021   Update: 02:32, 21 September 2021
4 new products among 38 to get export subsidies

Photo illustration: Business Insider Bangladesh

Bangladesh has included four new products for cash subsidy against exports for fiscal 2021-22.

The new products are: tea, bicycle and its parts, MS steel and cement sheet. These products will get a 4-percent cash subsidy from the current fiscal year.

Foreign Exchange Policy Department of Bangladesh Bank (BB) issued a circular in this regard on Monday.

According to the circular, these products have to have a minimum 30-percent local value addition to get the cash subsidy.

The central bank made a list of 38 products that will be entitled for the incentives and subsidies against exports. And this year, the BB has added the above-mentioned four products, paying heed to long-standing demands from the exporters concerned.

According to the circular, the highest 20-percent export subsidy will be given to agro products, diversified jute products, active pharmaceutical ingredients, potato, vegetables and agar.

Readymade garments that account for over 80 percent of Bangladesh’s total exports will continue to enjoy the subsidies. This year, textile exports to the European Union will get an additional 2-percent incentives to their existing 4 percent.

Freelancers in software and IT-enabled services exports will receive a 4-percent incentive, but exporters have to ensure repatriation of their export proceeds through the ICT ministry-recognised online marketplace.

In consultation with the relevant ministries, Bangladesh Bank selects a list of products for export subsidies every year. The BB disburses subsidies to exporters through their respective banks after receiving required documents.

 

Nagad
Monetary Policy Stance
Budget 2020-21
Walton