5 percent incentive for exploring new export market: Muhith
Dhaka, Sept 3 (UNB) - Finance Minister AMA Muhith on Friday said that the government would give five percent incentive for exploring new export destinations.
“We shall give 5 percent for export to new markets. It won’t be a cash incentive… there will be a separate fund or a separate window for exploring new markets,” he told reporters after a meeting of the taskforce on stimulus package at the Ministry of Finance.
Chaired by the Finance Minister, the meeting was attended by former Finance Minister and taskforce chairman M Sayeduzzaman, Bangladesh Bank governor Dr Atiur Rahman, Finance Secretary Dr. Mohammad Tareq and National Board of Revenue (NBR) chairman Dr. Nasir Uddin Ahmed.
Muhith informed that the Finance Ministry will issue a circular, likely on Sunday, to reveal the recent decisions of the taskforce on stimulus package.
Earlier, on November 26 last year, the government announced a series of additional fiscal and policy stimulus packages worth over Tk 1,000 crore for the export sectors to offset adverse impacts of global recession.
Under the packages, the exporters were scheduled to receive cash incentives for new export destinations for three years in all export destinations except the US, EU and Canada - 5 percent in the first year, 4 percent in the second year, and 2 percent in the third and final year.
The Finance Minister further informed that the SMEs will also get 5 percent incentives, but they have to be certified by their respective associations like that of BGMEA and BKMEA.
Asked about the fund size of the incentives, Muhith said that the incentive would be given out of the total allocation of Tk 2000 crore as stimulus for current fiscal.
“If anyone doesn’t have domestic backward linkage, he will not get it and the incentive will be valid till June.”
On the issue of 15 percent VAT on rented accommodation, he said that it will take some more time to take decision on the issue as not only the garment factories, but also the commercial houses are involved.
Muhith informed that the issue of captive power stations has been resolved as the government will give Tk 5 lakh as license fee to the regulatory commission.
“We shall give 5 percent for export to new markets. It won’t be a cash incentive… there will be a separate fund or a separate window for exploring new markets,” he told reporters after a meeting of the taskforce on stimulus package at the Ministry of Finance.
Chaired by the Finance Minister, the meeting was attended by former Finance Minister and taskforce chairman M Sayeduzzaman, Bangladesh Bank governor Dr Atiur Rahman, Finance Secretary Dr. Mohammad Tareq and National Board of Revenue (NBR) chairman Dr. Nasir Uddin Ahmed.
Muhith informed that the Finance Ministry will issue a circular, likely on Sunday, to reveal the recent decisions of the taskforce on stimulus package.
Earlier, on November 26 last year, the government announced a series of additional fiscal and policy stimulus packages worth over Tk 1,000 crore for the export sectors to offset adverse impacts of global recession.
Under the packages, the exporters were scheduled to receive cash incentives for new export destinations for three years in all export destinations except the US, EU and Canada - 5 percent in the first year, 4 percent in the second year, and 2 percent in the third and final year.
The Finance Minister further informed that the SMEs will also get 5 percent incentives, but they have to be certified by their respective associations like that of BGMEA and BKMEA.
Asked about the fund size of the incentives, Muhith said that the incentive would be given out of the total allocation of Tk 2000 crore as stimulus for current fiscal.
“If anyone doesn’t have domestic backward linkage, he will not get it and the incentive will be valid till June.”
On the issue of 15 percent VAT on rented accommodation, he said that it will take some more time to take decision on the issue as not only the garment factories, but also the commercial houses are involved.
Muhith informed that the issue of captive power stations has been resolved as the government will give Tk 5 lakh as license fee to the regulatory commission.
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