Dhaka, Saturday, 12 June 2021

BB Restricted 1% Cash Incentive 

BB Restricted 1% Cash Incentive 

Apparel Correspondent :Bangladesh Bank on Thursday restricted the 1% cash incentive facility offered in the current budget for apparel makers, making the existing beneficiaries ineligible for the new handout.

The central bank in a guideline attached a string of conditions to become eligible for the 1% cash incentive.If any appeal exporter avails the current 4% cash incentives instead of for not availing bonded warehouse facility and duty drawback would be barred from the 1% cash incentive, the BB circular said.Small and medium apparel industries currently enjoying the 4% incentive would also become ineligible for the latest government handout, it added.Besides, apparel exporters getting the current 4% cash incentive against their shipment in countries beyond the US, Canada and the European Union will also be ineligible for the privilege.Selected exporters now enjoying the 2% incentive for exporting in the euro zone, have also been barred for the 1% incentive facility, the guidelines elaborated.However, local apparel exporting companies at export processing zones and economic zones will be entitled to avail the incentive against their exports in the EU, the US and Canada, the guidelines adds.The BB circular said that the exporters must ensure at least 30% local value addition to become eligible for the facility.The BB said the products manufactured in own factories of the exporter would only be entitled for 1% special cash incentive on net price of freight on board. In the budget for fiscal year 2019-20, the government offered the 1% cash incentive against export of apparel goods, and allocated Tk2,825 crore on the head.