Exporters of consumer electronics and electrical home and kitchen appliances will enjoy 10% cash incentive against their exports.
In a circular issued on September 22, Bangladesh Bank (BB) stated that exporters of consumer electronics and electrical home and kitchen appliances will get 10% cash incentives. The incentives will be effective from July 1, 2019 to June 30, 2020.
In last fiscal year, a total of 35 eligible categories enjoyed cash incentives against their exports at different rates ranging from 4% to 20%.
Refrigerator, freezer, television, air conditioner, washing machine, micro woven, juicer and blender, air cooler, LED light, fans, switch sockets are considered as consumer electronics and electrical home and kitchen appliances.
Electronics and electrical home and kitchen appliances Bigstock
“It is a good initiative, which will encourage new investments in the sector creating employment opportunity,” Abdur Rouf, senior additional secretary of Walton international business unit, told Dhaka Tribune.
On the other hand, it also would create opportunity to increase the existing production capacity, said Rouf.
"Since our competitor is China, the incentive will help the exporters compete in the global markets," said Rouf.
Currently, Walton, a manufacturer of electronics and electrical home and kitchen appliances, is exporting to several countries.
How cash incentives is disbursed
In an effort to diversify products, the government has been providing cash incentives to promote emerging and new sectors.
After realization of export money from the importer, an exporter has to apply for the cash incentive to the bank and the bank will then conduct an audit of the firm. After the audit, the firm will place a certificate to a branch of the bank and the branch will forward it to the bank's head office.
Receiving the certificate, the bank places it to the Bangladesh Bank and the central bank disburses the incentives in four quarters to the exporters at a rate as declared.
