BB keeps export cash incentives unchanged for FY27

Bangladesh Bank (BB) has announced the continuation of the export cash incentive scheme for the fiscal year of 2026-27 while keeping the sector coverage and incentive rates unchanged from the just -ended financial year of 2025-26.

The central bank announced a comprehensive package of export incentives and cash assistance across 43 different sectors.

The Foreign Exchange Policy Department (FEPD) of the central bank issued a circular on Sunday after detailing the rates.

The rates are ranging from 0.30 percent to 10 percent. The item-wise rates remain identical to those of the previous fiscal year, reflecting a deliberate policy of continuity.

The newly announced rates will apply to goods shipped between January 1, 2026, and June 30, 2026.
The central bank has maintained that all conditions, eligibility criteria and operational procedures governing the disbursement of incentives will remain unchanged.

The highest incentives have been allocated for frozen shrimp, furniture, diversified jute products, agro-processed products, potato, leather goods, light engineering products and halal product exports.

As per the newly issued matrix, the highest incentive rate of 10 percent has been set for several high-priority sectors. These include diversified jute products, leather goods, agricultural and agro-processed products, potatoes, light engineering products, 100 percent halal meat and processed meat products, and accumulator batteries.

Meanwhile, the readymade garments (RMG) and textile sectors will continue to receive tailored assistance.

Alternative cash assistance for the export-oriented domestic textile sector in lieu of customs bond and duty drawback has been fixed at 1.50 percent.

Exporters of textiles to the Eurozone will receive additional special assistance of 0.50 percent.
Small and Medium Enterprises (SMEs) within the export-oriented RMG sector (knitwear, woven, and sweaters) will enjoy an extra benefit of 3.0 percent. Special cash assistance of 0.30 percent has also been designated for the overall RMG sector.

For new products or expansion into new markets (excluding the USA, Canada, EU, and UK), the textile sector will receive a 2.0 percent incentive.

Among other major sectors, an 8.0 percent incentive has been allocated for furniture, carbon made from jute sticks, jute particle boards, seeds of crops and vegetables, agar and attar, and frozen shrimp (with up to 20 percent ice capping).

Software, hardware, and IT-Enabled Services (ITES) exports will receive a 6.0 percent incentive, while individual-level freelancers exporting software and ITES will get 2.50 percent.

Active Pharmaceuticals Ingredients (API) will receive 5.0 percent, and pharmaceutical products will enjoy a 6.0 percent cash incentive.

The policy has also extended to institutions located in specialized zones.

Entities within the Bangladesh Economic Zones Authority (BEZA), Bangladesh Export Processing Zones Authority (BEPZA), and High-Tech Parks are eligible for incentives ranging from 0.50 pc to 2.00pc depending on the category of the goods and the nature of the industry.

This initiative reflects the government’s continued commitment to diversifying the export basket and maintaining competitiveness in the global market.