The government has cut cash incentives for five export items for the fiscal year 2015-16.
Bangladesh Bank announced the subsidies and cash incentives for 14 export items through a circular issued yesterday.
The cash incentive for textiles reduced from 5% to 4% while it came down from 15% to 5% for bone dust, from 15% to 12.50% for leather products, from 10% to 7.5% for jute products and from 7.5% to for jute yarn.
The small and medium garment factories would get 4% and the apparel sector 4% of additional cash subsidy instead of bond and duty drawback facilities.
Exporters will get 3% cash incentives for exporting new products and exploring new market outside USA, Canada and EU.
The export subsidies and cash incentives will be eligible for the exports shipped between July 1 this year and June 30, 2016.