The government has continued cash support or incentives for exports of 43 goods and services sectors in the current FY27.

Like the last fiscal year, the incentive rate has been kept unchanged this time too.

Exporters will receive cash support ranging from a minimum of 0.30% to a maximum of 10% depending on the product.

On Sunday (July 5), Bangladesh Bank issued a circular in this regard and sent it to the chief executives of all banks authorized to transact foreign exchange in the country.

The circular states that this cash support will be effective against exports of 43 specified goods and services sectors from July 1, 2026 to June 30, 2027.

The incentives will be given subject to repatriation of export earnings to the country within the specified period, compliance with existing rules and regulations related to foreign exchange, and fulfillment of the conditions of submission of necessary documents.

In addition, the central bank has instructed to complete the audit through an external auditor or audit firm assigned to the concerned bank before settling the application for cash assistance.

At the same time, it has been instructed to strictly follow the existing policies in the verification and selection of applications and payment. As per the instructions of Bangladesh Bank, the alternative cash assistance of 1.50% has been maintained for readymade garment (RMG) exports using domestic fabrics.

Additional 0.50% special assistance for exporters in the Eurozone and an additional 3% assistance for small and medium-sized ready-made garment industries will also continue.

In addition, 2% incentives have been maintained for exports to new markets outside the US, Canada, UK and the European Union and 0.30% as special cash assistance for the RMG industry.

A maximum of 10% incentive will be given for diversified jute and leather products. Five percent cash assistance for jute final products, 3% for jute yarn (yarn and twine) exports, and 6% for handicrafts remain in place.

Various products of the agriculture and fisheries sector - such as agricultural products, potatoes, crabs and other fishery products - will be given incentives of up to 10%.

In addition, 6% cash assistance will continue for ship exports and 8% for particle board exports.

Various industrial products including furniture, plastics, paper, ceramics, razors, motorcycles, medicines, information technology (IT and ITES), medical equipment, solar photovoltaic modules, cables and galvanized steel sheets will receive cash assistance of 5% to 8%.

Six percent for software, ITES and hardware exports and 2.50% cash assistance for individual freelancers to earn foreign income have been maintained.

The circular said that industrial establishments outside the bonded warehouse facility and establishments located in Bangladesh Export Processing Zones Authority (Bepza), Bangladesh Economic Zones Authority (Beza) and Hi-Tech Parks will also receive additional export assistance of up to 2%, subject to conditions.

Bangladesh Bank said that by keeping the rate and scope of incentives unchanged as in the previous fiscal year, continuity has been maintained in the export policy.

In the context of uncertainty in demand in the global market and increasing production costs, the central bank believes that this decision will ensure a stable and predictable policy environment for exporters.

According to experts, the continuation of the existing incentive structure can have a positive impact on the expansion of non-traditional and diversified export products in addition to the conventional export sector.

SM/CitizenTimes