Government of Bangladesh will extend subsidies on the export of 10 new products to boost export earnings to $50 bn by 2021, achieve higher growth and generate jobs. Garment export to the United States, Europe and Canada will also for the first time receive 1 per cent of the earnings as subsidy, for which the government has allocated Tk 2,825 cr.
Garment export already gets subsidies in four categories ranging from 2 to 4 per cent. The decisions, taken at a meeting chaired by Finance Minister AHM Mustafa Kamal recently, will soon be conveyed to the central bank for implementation, according to a report. According to Finance Secretary Abdur Rouf Talukder, the fruits of this subsidy would come through the achievement of the gross domestic product growth target.
At present, cash incentives ranging from 2-20 per cent is offered on the export of 26 categories of products. The new products will be eligible for cash incentives of 4 to 10 percent. They include garment products made from scrap fabrics, surgical instruments and appliances, home appliances, particle boards and products from betel nut plants.
Agro and synthetic products made by Bangladeshi entrepreneurs at export processing zones, software made by local companies at hi-tech parks and PET flakes will also get the benefit. The Finance Secretary also said remitters would get cash incentives effective from July 1 and the Bangladesh Bank would issue a circular within a week. He said remittance of up to $1,500 would get incentives with no questions asked. However, anything above will require necessary verification documents.