Procurement News Notice |
|
| PNN | 8067 |
| Work Detail | The government has brought three new export-oriented sectors under the list of beneficiaries of cash subsidy for the fiscal year 2016-17 to help increase the earnings from these sectors, according to the Finance Ministry sources. Among the new sectors, agar and attar exporters will get 20 per cent cash incentive, paper and paper-made product exporters will get 10 per cent cash subsidy. The crust and finished leather exporters who have shifted their industries to Savar area will get 5.0 per cent cash incentive from the current fiscal year. Finance ministry has also revised the rates of cash subsidy for jute diversified products to 20 per cent from existing 10 per cent, for leather products to 15 per cent from 12.50 per cent and vessel exporter will get 10 from existing 5.0 per cent. The ministry also has replaced 5.0 per cent cash subsidy from bone powder into the export of different parts of cows including gut, horns and vein. Potato exporters will get 10 per cent incentive, down from existing 20 per cent, according to the ministry sources. The ministry recently in a letter requested the Bangladesh Bank (BB) for taking necessary steps to this effect. Export subsidy for other sectors will remain unchanged, such as for finished jute products 7.5 per cent, jute yarn 5.0 per cent, and light engineering goods 15 per cent, products made of elephant grass, paddy straw and sugarcane straw get 15-20 per cent, exports of vegetables, fruits, processed agricultural products, Halal meat enjoy 20 per cent. Frozen shrimp from 7.0 per cent to 10 per cent in various conditions, and other frozen fish exports get 2.0 to 5.0 per cent. Besides, exporters of apparel items to new markets, excluding the United States, Canada and the European Union, enjoy 3.0 per cent cash incentive. Small and medium enterprises (SMEs), which export apparels, get 4.0 per cent. In addition to three new sectors, a total of 22 export-oriented industries will be provided cash subsidy in the FY 2016-17. According to Bangladesh Bank, allocation as cash subsidy has been fixed at Tk 45 billion for this fiscal. It was Tk 35 billion and Tk 34 billion in FY 2015-16 and FY 2014-15 respectively. Of the total amount of cash subsidy in current FY, finance ministry has already released first installment of cash subsidy of Tk 11.25 billion to the exporters in different sectors. Jute goods exporters got Tk 1.25 billion against its total allocation of Tk 5.0 billion cash subsidy for the FY 2016-17. And Tk 10 billion has been freed for others sectors including apparel, frozen fish, and leather goods etc against the entire allowance of Tk 40 billion in the same FY. Some 19 export-oriented sectors and items including textile and apparel, frozen fish, leather goods, agrobased products and agroprocessing industry, Halal meat, bone powder, potato, light engineering, shipbuilding and pet bottle flakes, received cash incentive in the FY 2015-16. |
| Country | Bangladesh , Southern Asia |
| Industry | Financial Services |
| Entry Date | 15 Oct 2016 |
| Source | http://www.thefinancialexpress-bd.com/2016/09/07/45026/Three-new-export-oriented-sectors-to-get-cash-subsidy |
