BB announces cash incentive for four new export sectors

The Bangladesh Bank has announced a cash incentive at four percent for four new export sectors.

The central bank's Foreign Exchange Policy Department issued four different circulars on Wednesday in this regard.

The circulars said exports against tea, bi-cycle and its parts, MS steel products and cement sheet, which are produced locally, will get four percent cash incentives in the current financial year.

In addition, another circular for cash incentive was issued against eligible exports from specialised zones (BEZA, BEPZA, Hi-Tech Park Authority) at one percent for the export of all goods.

With this declaration, this year the number of products and industries eligible for cash incentive stands at 43.

Cash incentive will be eligible for export with local value addition of at least 30% for all products.

The circular said that cash incentive along with duty drawback or customs bond facilities would not be applicable for the new four industries.

In all cases, cash incentive will be applicable in accordance with WTO rules for meeting expenses of handling, improvement of products, and transportation cost etc, the circular added.

Officials concerned said to diversify the country's export basket, the government has taken the decision for cash assistance to these four new sectors.

Earlier, The Foreign Exchange Policy Department of the Bangladesh Bank issued instructions regarding this cash assistance for the export sector for 2021-22.