Bangladesh Bank has announced a revised export incentive package covering 43 product categories, under which local textile industries will receive 1.50% alternative cash assistance in lieu of duty drawback or bonded warehouse facilities.
Under the same policy framework, small and medium-sized enterprises in the garment sector will be eligible for a 3% cash incentive, while exporters shipping goods to the Eurozone will receive an additional 0.50% incentive.
In a circular issued by the Foreign Exchange Policy Department-1, the central bank confirmed that the revised incentive rates will apply to shipments made between 1st January 2026, and 30th June 2026. The measures are intended to enhance export competitiveness and support diversified industrial growth.
Bangladesh Bank said the alternative cash assistance has been designed specifically for local textile manufacturers that do not benefit from bonded warehouse facilities or duty drawback schemes, offering targeted support to domestically integrated producers.
The central bank further noted that exporters seeking to avail themselves of the incentives must have their claims audited by external auditors in accordance with existing regulatory requirements.
The policy also extends cash incentives to enterprises operating in Bangladesh Economic Zones Authority areas, Bangladesh Export Processing Zones Authority zones and High-Tech Parks, with support ranging from 0.50% to 2.00% depending on the product category and industry classification.
Bangladesh Bank said the initiative reflects the government’s continued emphasis on export diversification, value addition and maintaining momentum in global markets, with textiles remaining a central pillar of the country’s export economy.
