IT freelancers, tea exporters to get cash incentive

Freelancers who work to export software and IT enabled services are going to get 4 per cent cash incentive along with exporters of locally grown tea, bicycle and parts, steel products and cement sheets in the current fiscal year.

Freelancers will need to fulfil some conditions to avail the benefit.

With this addition, the list of products or sectors eligible for cash incentives for exports, rises to 43 including freelancers for the current fiscal year of 2021-22, up from 38 the previous year, according to a circular by Bangladesh Bank.

Apart from these products and 1 per cent cash support for garments exports, the government yesterday declared that investors in the industrial enclaves under the Bangladesh Economic Zones Authority (BEZA), Bangladesh Export Processing Zones Authority (BEPZA) and Bangladesh Hi-Tech Park Authority would get 1 per cent cash incentive for export of other items produced in the zones.

"The government offers the incentives in order to encourage exports," said a senior official of Bangladesh Bank.

Dominated by garments, Bangladesh's export earnings stood at US$ 38.75 billion in fiscal year 2020-21, up 15 per cent a year ago, data by Export Promotion Bureau showed.

And the government has been providing as much as 20 per cent to fillip shipment of goods.

Currently, exporters of diversified jute goods, active pharmaceutical ingredients, halal meat, potato as well as fresh fruits and vegetables get 20 per cent cash incentive. The benefit will continue for the next fiscal year, according to the Bangladesh Bank circular.

Some 15 per cent incentive is given to facilitate the export of products such as light engineering products, furniture, accumulator battery, leather goods, footwear and bags made of synthetics and fabrics and rice.

The government also provides 10 per cent incentives to encourage exports of a number of products including plastic goods, IT enabled services, and pharmaceutical products.

Like the previous year, small-and-medium factories exporting garments will get 4 per cent incentives against exports for the current fiscal year.

Export-oriented factories will get 4 per cent incentive instead of obtaining duty-free benefit for importing raw materials for export and seeking duty drawback, according to the circular.

Yesterday, the central bank also added float glass sheet, cast iron, and aluminium in the list of light engineering products to get export benefits. It also included compressors in the list of electronic appliances that can avail the incentive.

Bangladesh Bank said firms will have to ensure 30 per cent value addition locally to avail the benefit.