BB announces export incentives for 43 sectors for Fy26-27

Bangladesh Bank (BB) on Sunday announced export incentives and cash assistance rates for 43 sectors for the fiscal year FY2026-2027, aimed at encouraging the export trade.

The new rates will be applicable to products shipped between July 1, 2026, and June 30, 2027, according to a circular issued by the Foreign Exchange Policy Department (FEPD) of the central bank.

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.

According to the circular signed by BB Director Md. Harun-Ar-Rashid, cash assistance applications submitted by exporters must undergo periodic audits by external audit firms in compliance with the central bank’s guidelines.

All other existing conditions regarding foreign exchange circulars will remain effective.

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 circular also specified fixed subsidy rates for companies located in Specialized Zones, including BEZA, BEPZA, and Hi-Tech Parks.

Processing agricultural products under Type-A and Type-B enterprises in these zones will receive a 2.0 percent subsidy, while other designated sectors will receive incentives ranging from 0.30 percent to 2.0 percent, reports UNB.