The interim government has decided to uphold the existing export incentives and cash assistance programs for 43 sectors from July to December of the current fiscal year to bolster the country’s export efforts.
The central bank announced this decision on Thursday, specifying that the rates for export incentives and cash support for goods shipped between 1st July and 31st December will vary from 0.30% to 10%, depending on the product category. This marks a reduction from the previous maximum rate of 20%.
These incentives were also available to the same sectors throughout the previous fiscal year, from 1st July 2024, to 30th June 2025. The circular confirms that these benefits will remain unchanged for the first half of the current fiscal year.
Currently, 43 sectors qualify for these benefits, with the government allocating approximately Taka 9,025 crore annually for the program over the past three years.
The country first began reducing export subsidies in February last year, a move that disappointed many exporters who felt the reduction negatively impacted their competitiveness.
