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To further encourage export trade, the government has decided to continue handing out incentives against exports from 43 sectors from July 1 to December 31 in the fiscal year 2025-26.
A circular to this effect was issued by Bangladesh Bank (BB) on July 10, 2025. According to the regulatory firman, the rates of export incentives and cash support for shipped goods from July 1 to December 31 will range from 0.30 percent to a maximum of 10 percent, depending on the product category.
This facility was available to 43 sectors for the entire previous fiscal year from July 1, 2024 to June 30, 2025.
The circular states that the same incentives will continue to be provided for the first six months of the current fiscal year.
According to the circular, the highest cash incentives of 10 per cent will be provided for vegetables, fruits, and processed agricultural produce, diversified jute products, cent-percent halal meat and halal meat products, accumulator batteries, leather products, potato peels, and light- engineering products.
Businesses say the reduction in incentive period is frustrating for them as the prevailing sluggishness in the economy stemming from both internal and external fronts has been hurting the business activities.
Under such circumstances, the business community expects that the government and authorities concerned will review the decision through extending the tenure by another six months.
Contacted for his instant reaction, president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) Mohammad Hatem said the central bank should have clearly mentioned what will happen after six months to the export-oriented industries.
"Otherwise, it will badly impact their marketing planning," he said.
The leader of Bangladesh's apex knitwear exporters regret that the businesspeople normally suffers a lot in getting the little amount of cash supports in complying too many audits by institutions like Bangladesh Bank and the National Board of Revenue (NBR).
"Instead of such harassment", he says, "the central bank should issue an instruction directing the commercial banks to provide 2.5-percent cash incentives the way they provided to the remitters."
Mr. Hatem mentions that the competitor countries continue to provide various forms of incentives to promote exports and investments there. But, "unfortunately", the country keeps squeezing the incentives on the excuse of LDC (least-developed country) graduation and IMF's suggestion.
"It's a wrong policy."
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