Bangladesh will give a cash subsidy for some 14 exportable products in the fiscal year 2015-16. Exporters will receive cash subsidy on the products against net repatriation of the free-on-board prices from July 1, 2015, to June 30, 2016.

Cash subsidy for four products, including textiles has, however, been reduced. The cash incentive for the export-oriented local textile sector came down to 4 per cent in financial year ’16 as an alternative to duty bonds and duty drawbacks from 5 per cent a year ago. Exporters from small and medium industries in the textile sector will get an additional incentive of 4 per cent along with the regular incentive instead of 5 per cent earlier.

The cash subsidy on handmade products from hay and sugarcane fiber will remain unchanged at 15 to 20 per cent for financial year ’16 while three per cash incentive will be unchanged for export of new textile products and expanding export of apparel items to new markets other than the United States, Canada and the European Union. The cash subsidy on leather goods has been re-fixed at 12.50 per cent from 15 per cent.