Export subsidies remain unchanged for FY21
Exporters will continue to get cash incentives for the export of goods in 38 categories
The government, on Monday, announced cash incentives for exports in the current fiscal year. The subsidy rates announced last year for the export of products in 38 categories have not been changed.
In September last year, the Bangladesh Bank issued a circular announcing a cash subsidy against the export of products in 37 categories for FY2019-20.
Later, on January 30, 2020, the central bank issued another circular announcing a 15% cash incentive for the export of rice.
Apart from the continuation of incentives in the sector, the central bank's other circulars issued last year concerning export subsidies would remain valid for the current fiscal year, read a Bangladesh Bank circular issued on Monday.
As per the Bangladesh Bank's circular issued in September last year, an additional 1% special incentive was applicable for the export of ready-made garments (RMG).
RMG exporters were enjoying the additional special incentive in addition to the 4% cash incentive for the export of new textile and garment products and expanding export of textile items to new markets – markets other than the United States, Canada and the European Union.
Small and medium industries of the textile sector would get cash incentives at a 4% rate for the export of apparel products.
The export-oriented local textile sector would enjoy a 4% cash incentive as an alternative to duty bonds and duty drawbacks.
Among others, incentives for the export of consumer electronics, electrical home and kitchen appliances would remain intact along with a number of products manufactured in economic zones and hi-tech parks.
The 2% cash incentive remains unchanged for the exporters of apparel products to the Eurozone in FY21 as it was awarded in FY20.
Information technology-enabled services would get a 10% cash incentive and the information technology companies established in hi-tech parks would get a 4% additional incentive for exporting products to new markets.
Bags with the item of shoes made from synthetic fibre, garments waste with handicrafts – elephant grass and coconut coir, as well as surgical instruments and appliances with pharmaceuticals are among the products which would be treated for cash incentives.
The 10% cash incentive against the export of hogla (elephant grass) and coconut coir would remain unchanged in FY21.
Exporters of pharmaceuticals, surgical instruments and appliances, photovoltaic modules, motorcycles, chemical products, razors and razor blades, ceramic products, caps, crabs, mud eels, and galvanised sheets/coils would get a 10% cash incentive in FY21.
Cash incentives at the rate of 10% would be applicable for the export of intestines, horns and arteries (without bone), crust and finished leather goods. The leather goods would be produced at the factories in the Tannery Park at Savar in Dhaka and outside the Tannery Park, which have their own effluent treatment plants.
Exports of ships, plastic products, pet flex, and locally produced paper would be considered for 10% cash incentives in FY21.
Exporters of frozen fish would get a 5% cash incentive for their products covered with ice weighing less than 20% of the total weight, a 4% cash incentive for products covered with ice weighing 20-30% of the weight, a 3% cash incentive for products covered with ice weighing 30-40% of the weight, and a 2% cash incentive for products covered with ice weighing 40% and above the total weight.
Exporters of shrimp would get a 10% cash incentive if their products are covered with ice weighing up to 20% of the total weight. The exporters would get a 9% cash incentive for their products which are covered with ice weighing 20-30% of the weight, an 8% cash incentive for products covered with ice weighing 30-40% of the weight and a 7% cash incentive for products covered with ice weighing 40% and above of the weight.
A 20% cash incentive would be given for the export of diversified jute products, while it would be 7% against the export of jute yarn and twine, and 12% against the export of jute hessian, sacking and carpet backing cloths.
Exporters of leather goods, light engendering products, furniture, accumulator batteries, as well as shoes and bags made from synthetic fibre and fabric would continue to enjoy a 15% cash incentive against their export.
Bangladeshi companies established in economic zones would get a 4% additional cash incentive for exporting shoes and bags made from synthetic fibre and fabric to new markets.
A 20% cash incentive would be given for the export of charcoal, agricultural products, halal meat, potatoes, and seeds in FY21.