FT Online

Published:
2019-08-06 12:26:35 BdST

Authorities meet on 2.0pc incentives for remitters


Authorities concerned met on Monday in the wake of an announcement in the budget to grant 2.0 per cent incentives for remitters as part of its efforts to encourage them to send money through the banking channel.

The meeting was held at the Bangladesh Secretariat with Finance Minister AHM Mustafa Kamal in the chair.

While briefing newsmen after the meeting, Finance Secretary Abdur Rouf Talukder said the remitters who will send up to US$ 1,500 will get incentives automatically.

However, the remitters who will send over $ 1,500 will be eligible for the incentives subject to submission of necessary documents.

The central bank will soon issue a notification in this regard elaborating the procedures of providing incentives, he said.

The meeting decided to include 13 more products in the list of cash incentives to promote their exports. Besides, it approved 1.0 per cent cash incentives for apparel export to Europe, USA and Canada.

Mr Talukder also said the finance minister in his budget speech announced that apparel exporters who don't get any incentives will be given 1.0 per cent incentives from the current fiscal year.

It was found that apparel exports to Europe, America and Canada are not eligible for the incentives, he added.

So, the meeting decided to provide 1.0 per cent incentives to exporters to these markets. Additional Tk 28 billion will be needed for this and fund has already been allocated, he said.

Mr Talukder further said as per the latest decision, medical equipment exporters will get 10 per cent cash incentives, and products made of intestines, arteries and horns will also get 10 per cent incentives subject to proper verification.

Home appliance exporters will also get 10 per cent incentives and in this case, customs department will carry out proper verification before each consignment of goods is exported.

He said earlier many exporters got cash incentives without sending goods and by submitting only papers. This time they will get no chance, he added.

Products like particle board, items made of betel leaves and garment waste, agro-processing industry, software, synthetics goods and pet-flex will also get cash incentives, he added.

Presently, some 35 export-oriented sectors enjoy cash incentives facility. During the last four fiscal years, the government set aside Tk 45 billion every year to boost exports by providing cash incentives.

Of the total amount, Tk 40 billion meant for overall export sectors while Tk 5.0 billion was put aside exclusively for the jute sector.

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