Govt raises incentive on remittance to 2.5%

Tax

Dhaka, Jan 1 - The government has increased the cash incentive on remittance sent by Bangladeshi expatriates to 2.5% from the existing 2 %.

The increased rate will be effective from January 1, 2022, said a notification issued by the Finance Ministry on Saturday.

“The government has taken the move aiming to improve the living standard of people, increase forex reserve, prevent money laundering, create job opportunities and encourage sending hard-earned remittance through legal channels,” says the notification.

In 2019, the government launched a 2% cash incentive for those remitting their earnings through the banking channel.

According to a Finance Ministry document obtained by UNB, the remittance inflow of 2019-20 and 2020-21 was 11.2 percent and 36 percent while the target for the current 2021-22 fiscal is 15 percent with a projection of 12 percent and 10 percent for 2022-23 and 2023-24 fiscals respectively. – UNB