Finance Minister AHM Mustafa Kamal on Thursday proposed to allocate Tk 30.6 billion to provide incentives on the money that expatriates send back as remittance.
The incentives will be given at the rate of 2.0 per cent from upcoming financial year (FY20), as per a UNB report.
The minister proposed the incentive while placing the national budget for FY20 at parliament.
The incentives will be given aiming to lessen the burden of increased expenses in sending remittances, as well as to encourage bringing in remittances through legal channels.
"This will significantly increase the remittance inflow through legal channels and discourage the 'hundi' business," he said.
He also said the expatriate Bangladeshi workers and their families often face financial losses and risks due to accidents and various other causes as there are no insurance facility available for them.
Preparations have been taken to bring the expatriate workers under the insurance scheme, which will be implemented shortly, Mustafa Kamal said.
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