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The Bangladeshi government has announced a gradual phase-out approach for incentives given to export-oriented sectors.
The decision has been made as incentives can not be kept after 2026 when Bangladesh is scheduled to graduate from the Least Developed Country (LDC) status, reports Xinhua.
According to a circular issued by the Bangladesh Bank on Tuesday, the maximum incentive rate has now been set at 15 per cent and the minimum at 0.5 per cent and it would be applicable for Jan. 1 to June 30 this year.
Bangladesh used to give cash assistance ranging from 1.0 per cent to 20 per cent on export earnings in order to encourage exporters and make them more competitive in international markets.