Govt offers Tk 10 bn cash incentives to exporters-Texglobe

Govt offers Tk 10 bn cash incentives to exporters

Updated: 2010-8-10 Source: Texglobe

As revealed by officials, cash incentives worth Tk 10 billion have been released by the government for distributing the same amongst leading exporters, as a first form of instalment for the present financial year.

Central Bank, towards the end of last month, was directed by the Finance Ministry via a letter to pay the cash incentives to the exporters.

Around Tk 1.50 billion will be given to jute exporters, whereas the remaining Tk 8.50 billion will be distributed to other segments such as home-made textiles, leather goods, handicrafts and other sectors.

Finance Minister, AMA Muhith, in the recent financial budget, has made an announcement that, sectors affected by recession will receive a stimulus package of Tk 20 billion.

Also, the government has announced to pay cash incentives to major exporters, so as to help them maintain their competitive edge in the global markets.

Moreover, cash subsidy at the rate of 5 percent for domestically produced textiles and 17.5 percent for jute products, also forms part of government incentives.

In spite of apprehensions by leading exporters and mutual agencies that, shipments would be affected by worldwide recession, government for this financial year has set an ambitious export target of $17.8 billion.

The aforesaid target would require a steep 14 percent or over $2 billion increment in shipment from the exports of $16.2 billion, which was witnessed in 2009-10 fiscal.