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Export incentives for 43 sectors to continue

Staff Correspondent
5 July 2026 21:41 Updated: 5 July 2026 21:41

Bangladesh Bank has decided to continue export incentives, or cash assistance, for 43 sectors in the 2026-27 fiscal year to support the country’s export sector.

The incentives will apply to goods exported between July 1, 2026, and June 30, 2027.

The central bank’s Foreign Exchange Policy Department-1 (FEPD-1) issued a circular on Sunday (July 5) to the head offices and main foreign exchange branches of all authorised dealer (AD) banks.

According to the circular, the government will maintain cash incentives for the existing 43 export sectors to further promote the country’s export trade.

The incentives will be provided at the prescribed rates throughout the fiscal year.

The highest incentive rate of 10% has been retained for agricultural products and processed agricultural goods, potatoes, light engineering products, 100% halal meat and processed meat, diversified jute products, leather goods, accumulator batteries and several other priority export sectors.

For jute products, diversified jute goods will receive a 10% incentive, while hessian, sacking and CBC products will receive 5%, and jute yarn will receive 3%.

However, exporters of diversified jute products must ensure that at least 50% jute content is used in accordance with the Jute Act, 2017.

The ready-made garment (RMG) sector will continue to enjoy various incentives. Export-oriented domestic textile industries will receive a 1.5% alternative cash incentive, while textile exports to Europe will qualify for an additional 0.5%. Small and medium enterprises (SMEs) will receive a 3% incentive, exports to new markets will receive 2%, and a special 0.30% cash incentive will continue for RMG exports.

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For frozen shrimp and fish exports, incentives ranging from 1.5% to a maximum of 8% will be provided, depending on the level of ice glazing.

Cash incentives ranging from 2% to 8% will also remain in place for sectors including shipbuilding, furniture, plastic products, pharmaceutical active ingredients (API), software and IT-enabled services (ITES), pharmaceuticals, motorcycles, solar power modules, ceramics, galvanised steel, electronics, chemical products, bicycles, MS steel, tea and rice.

Software, IT-enabled services (ITES) and hardware exports will receive a 6% incentive, while individual freelancers earning foreign exchange through ITES exports will be eligible for a 2.5% cash incentive.

Businesses operating in Special Economic Zones (SEZs), under the Bangladesh Economic Zones Authority (BEZA), Bangladesh Export Processing Zones Authority (BEPZA) and Hi-Tech Parks will continue to receive additional incentives under existing policies.

Bangladesh Bank also instructed that all applications for export incentives must be verified by external audit firms in accordance with the prescribed rules. All previous circulars and related guidelines on export incentives will remain in force.

 

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