BB allows use of Taka fund for FC payment

The central bank has allowed a section of industrial enterprises located in domestic processing areas of economic zones to settle foreign currency payment against royalty and technical services fees from the Taka fund.

This opportunity will be applicable to industrial units that do not have foreign currency income.

Taka fund will help the companies meet the domestic demand only, not that of the export market.

The Foreign Exchange Policy Department of the Bangladesh Bank issued a notice on Sunday granting such a permission.

The permission will facilitate transactions for meeting foreign payment obligations needed for the purpose of repatriation of royalty, technical knowhow and technical assistance fees.

As per the guidelines concerned, the authorised dealers (ADs) may remit the royalty, technical know-how and technical assistance fees of enterprises of zones from their foreign currency accounts without prior permission from Bangladesh Bank or the Bangladesh Economic Zones Authority if the total fees and other expenses do not exceed the limits of 6.0 per cent of the cost of imported machinery for new enterprises and surpass 6.0 per cent of the previous year's sales as declared in the income tax returns in case of operational companies.

However, the remittance of such fees in excess of the permissible ceiling is subject to prior approval from the BEZA.

Besides, the companies will have to report each transaction to Bangladesh Bank as well as the BEZA.

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