2024-02-13 08:55:21
The central bank has issued new guidelines regarding cash assistance against exports. Under this directive, 3 percent cash assistance will be provided against exports of goods to new markets including Australia, Japan and India. In the notification issued on January 30 last, the cash assistance on exports was reduced to 0.50 percent excluding the three countries discussed from the new market. And this time it is included. The new directive will come into effect from February 1.
On Monday (February 12), Bangladesh Bank’s Foreign Exchange Policy Department issued new guidelines regarding cash support against exports.
According to the new directive, the circular issued on January 30 has been cancelled. Instead, the central bank has given new instructions. According to the central bank, the government is providing export incentives or cash assistance against exports in 43 sectors in the current financial year 2023-24 with the aim of encouraging the export trade of the country. According to the Agreement on Subsidies and Countervailing Measures (ASCM), no export incentives or cash assistance can be given to LDCs. Bangladesh is going to pass from the list of least developed countries in 2026. The government has decided to gradually reduce the rate of cash assistance in various sectors from February 1, considering that the export sector may face challenges if export incentives or cash assistance are withdrawn altogether after such a transition.
The directive further states that the directive regarding audit of export incentive or cash assistance applications by external auditors shall remain in force. Apart from this, other instructions of the circular issued earlier will remain unchanged.