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Bangladesh revises cash incentives

Bangladesh has revised the cash incentive scheme for the fiscal year 2015-2016, raising the rate of incentive for textile products exported to the Eurozone area and leather goods.

The rate of cast incentive for export of textile products to the Eurozone area has been increased to six per cent from the current four per cent. The sector gets cash incentive as an alternative to the duty bonds and duty drawback facility. The rate of cash incentive for export of leather goods has also been increased to 15 per cent from the current 12.5 per cent.

Exporters who have already received the cash incentive at the existing rate will also be allowed for the additional benefit.

Exporters would receive cash subsidy for the products against net repatriation of the FOB (freight on board) prices. Bangladesh will shore up and offer incentives for export-oriented industries. Six export products alone account for nearly 90 per cent of the country’s yearly export earnings.

Bangladesh’s exporters have been passing through a torrid time in recent times because of the euro zone crises, higher production costs and infrastructure deficiencies.

The country offers export incentives for agro products such as vegetables and fruits, leather goods, home-made textiles and jute goods.