To diversify the country's export basket, the government will provide cash assistance to four new sectors – tea, bicycles and parts, MS steel products, and cement sheets.
The Foreign Exchange Policy Department of the Bangladesh Bank issued instructions regarding the cash assistance for the export sector for 2021-22 on Monday.
In 2020-21, the export of bicycles was 30% more than the target and increased 60% from the previous year. Therefore, the government has decided to provide a 4% cash assistance to exporters to further increase exports in this sector.
Exports in the tea sector in the last financial year also increased by 14% compared to the previous year, which was at about 90% of the export target.
In addition, cash assistance will be provided to category-A and Category-B companies under export processing zones and export zones across the country. Existing support for specialised economic zones, such as Beza, Bepza, and Hi-Tech Park, has been expanded.
According to the instructions of the central bank, all companies of the specialized zones will get incentive assistance at the rate of 1% for the export of all goods. However, category-A and Category-B companies will be provided cash assistance at 4% against the export of processed agricultural products.
Type-A refers to a completely foreign-owned company whereas a domestic-foreign joint venture company falls under Type-B.
This year, 4% cash assistance for individual-level freelancers, float glass sheets, opal glassware, cast iron and aluminium engineering products will be considered for export subsidy.
Apart from these, export subsidies will also be available in the consumer electronics, electrical home and kitchen appliance sectors such as high-tech products (compressors) and HCFC-free refrigerators and electronic products.
In all cases, one has to apply for cash assistance within 360 days of the arrival of export proceeds in the country.