On January 30, 2024, the government announced a restructuring of cash incentives for exports across 43 product categories, resulting in reduced export subsidy rates for the current fiscal year 2023-24. The Bangladesh Bank, in a recent circular, explained that this decision was made in anticipation of the country’s graduation from the least developed status in 2026, where World Trade Organization provisions would prohibit export subsidies.
Despite opposition from exporters who fear negative impacts on the export sectors, experts have welcomed the government’s initiative. Effective from January 1 to June 30, the revised export subsidy instructions, replacing the previous circular issued on August 23 for the fiscal year 2024, bring changes to cash incentives for various categories.
For frozen fish exporters, the cash incentives vary based on the percentage of weight covered with ice. Ranging from 4% for products with up to 20% ice weight to 2% for products with 40% and above ice weight.
Exporters of shrimp will get 9% cash incentive if their products are covered with ice weighing up to 20% of the total weight. Like wise the shrimp exporters will get 8% cash incentive for their products which are covered with ice weighing 20% to 30% of the weight, 7% cash incentive for products covered with ice weighing 30% to 40% of the weight and 6% cash incentive for products covered with ice weighing 40% and above of the weight.
