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10 new products to get export subsidy

Remittance of up to $1,500 to enjoy incentives without verification

Star Business Report
The government is going to extend subsidies on the export of 10 new products with a view to boost export earnings to $50 billion by 2021 to achieve higher growth and generate employment.
Moreover, garment export to the US, Europe and Canada will for the first time get 1 percent of the earnings as subsidy, for which the government has allocated Tk 2,825 crore.
Garment export already gets subsidies in four categories ranging from 2 to 4 percent.
The decisions, taken at a meeting
chaired by Finance Minister AHM Mustafa Kamal at his secretariat office yesterday, will soon be conveyed to the central bank for implementation.
Briefing reporters after the meeting, Finance Secretary Abdur Rouf Talukder said the US-China trade war offers a scope for boosting Bangladesh's exports. "The government is going to provide subsidies to exporters to create employment opportunities,” he said.
According to him, the fruits of this subsidy would come through the achievement of the GDP growth target.
At present, cash incentives ranging from 2-20 percent is provided on
export of 26 categories of products.
The new products will be eligible for cash incentives of 4 to 10 percent.
They include surgical instruments and appliances, buffalo intestines and horns, home appliances, particle boards, products from betel nut plants and garment products made from scrap fabrics.
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 secretary said Walton has already applied for incentives against their export of home appliances, giving the government the idea on providing subsidy on such products.
Home appliances and particle boards will be provided with the incentive if there is a minimum of 30 percent value addition locally, said the finance secretary.
Pharmaceuticals had been getting the export incentive and surgical instruments and appliances will be provided the same under the pharma category, he said.
Talukder said the subsidy would be provided to exporters after customs certifies that the items have really been exported.
REMITTANCE INCENTIVE The finance secretary also said remitters would get cash incentives, effective from July 1 and Bangladesh Bank would issue a circular within one week.
He said remittance of up to $1,500 would get incentives with no questions asked.