The Ministry of Finance and Economic Development is preparing a draft proclamation to replace the existing proclamation providing for export incentives ratified six years ago.

 The previous export trade duty incentive scheme is limited to a duty draw back scheme, also known as a zero taxation incentive. The draft export trade incentive law is proposed to offer broad incentives.

According to the proposed export trade incentive law, the bonded export factory scheme, manufacturing warehouse scheme, input supply warehouse scheme and industrial zone scheme are included in the draft submitted to the parliament last week.

The draft incentive law has also made some changes to the duty draw back scheme. Under the current law, exporters are forced to wait almost a year to claim benefits under the duty draw back scheme. Exporters benefiting from the incentives under the new draft law will be allowed to claim their duty drawback within 30 days.

The bonded export factory scheme which was applicable only to the leather sector for the last two years is proposed to be extended for other industrial sectors.