The products include ceramics, pharmaceuticals, razors and razor blades, hats, chlorine, hydrochloric acid, caustic soda, hydrogen peroxide, and motorcycles
As part of its product diversification initiatives, the government has decided to provide cash incentives on the export of nine new product categories.
The products include ceramics, pharmaceuticals, razors and razor blades, hats, chlorine, hydrochloric acid, caustic soda, hydrogen peroxide, and motorcycles.
Commerce Minister Tofail Ahmed made the announcement at a media briefing in the capital on Wednesday.
“In the past, export earnings were highly dependent on the apparel sector, and this still exists. However, we are gradually beginning to diversify products,” he said.
“I think the incentives will have a significant impact on export earnings, as well as on product diversification,” the commerce minister added.
Tofail further said the decision to provide cash incentives on the products was taken at a meeting with Finance Minister AMA Muhith earlier in the day.
Currently, 27 product categories enjoy cash incentives on exports. After publication of the gazette notification on the nine new additions, the total number of product categories which enjoy cash incentives on exports will reach 36.
Of the new items, ceramics, pharmaceuticals, caustic soda, motorcycles, and hats will be entitled to 10% cash incentives on exports.
According to data from the Export Promotion Bureau (EPB), the Readymade Garment (RMG) sector contributed 83.49% or $30.61 billion to the country’s total export earnings from goods in the last fiscal year. The total export earnings from goods amounted to $36.66 billion in FY18.
Speaking at the media briefing, Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) President, Shafiul Islam Mohiuddin, expressed hope that the incentives would help product diversification and reduce dependency on the apparel sector.
He also urged the government to explore new opportunities for export.