Cash incentive for export of pharma raw materials

The government has extended 20 percent cash incentive to pharmaceutical raw material manufacturers as it earnestly looks to boost overseas shipments.

The incentive will become effective from July last year, according to a notice from the central bank yesterday.

Exporters who manufacture the active pharmaceutical ingredient at their own factories will qualify for the incentive. They will have to apply within 60 days to enjoy the benefit.

Those produced in factories housed in export processing zones and economic zones will not come under the purview of the facility.

The central bank will take punitive measures against banks that allow the businesspeople to enjoy the cash incentive by violating the rules.

The amount of the cash incentive, which is provided to the unscrupulous persons, would be deducted from the errant banks' current account maintained with the central bank, the notice said.