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Cash incentive on remittance to continue

FE REPORT | June 10, 2022 00:00:00

The cash incentive on remittance income at the existing rate of 2.5 per cent would continue in the next fiscal year (FY 2022-23).

The measure was proposed in the new national budget placed in parliament on Thursday, aimed at encouraging the wage earners to send home their hard earned money through legal channels.

"I am proposing to keep the same rate of incentive for remittance in the next fiscal year," said finance minister A H M Mustafa Kamal in his budget speech.

In FY2020-21, the growth of remittance stood at 36.10 per cent. However, since the very beginning of FY2021-22, the income from remittances slightly decreased.

"With a view to encouraging remittance through legal channels, we raised the rate of incentives 0.5 percentage point to 2.5 per cent from January 2022," the minister mentioned.

The government has withdrawn the mandatory provisions for submission of earning documents of the remitters in the case of availing cash incentives against remittances exceeding the amount of US$ 5,000.

As a result, in recent months the flow of remittance has begun to increase again. It is expected that a satisfactory growth of remittance will be back on track soon.

To ensure dignified profession for Bangladeshi workers abroad, all the training programmes of technical training institutes and institutes of marine technology are conducted under the National, Technical and Vocational Qualification Framework (NTVQF) from the current fiscal year.

According to the budget proposal, a plan of action for establishing technical training institutes at every Upazila in phases has been taken up for inspiring the marginalised communities across the country.

The implementation of the project for establishing 100 technical institutes at Upazila level will start soon.

Apart from this, there is a plan to ensure overseas employment of 810,000 Bangladeshi workers and provide skill development training to 520,000 workers in different trades.

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