The government has decided to continue export incentives and cash assistance for 43 sectors in fiscal year (FY) 2026-27, despite having its previous plan to phase out such subsidies ahead of Bangladesh's LDC graduation.
The Foreign Exchange Policy Department (FEPD) of Bangladesh Bank (BB) in a circular on Sunday said the revised incentive structure will remain applicable for export shipments between July 1, 2026 and June 30, 2027.
The export support was available for 43 sectors in the entire previous fiscal year from July 1, 2025 to June 30, 2026.
The government maintained the incentive support for both traditional and non-traditional export sectors, aiming to help sustain their competitiveness in global markets.
However, some changes have been brought in the export support for footwear and bags that are made from a blend of synthetic and fabric materials.
Under the change, exporters of footwear and bags made from synthetic-fabric blends, which do not avail customs bond or duty drawback facilities, will receive the full cash incentive, with the rate keeping unchanged at 8.00 per cent.
In contrast, under the revised second category, exporters using bond or duty drawback facilities will see a drastic cut in their support to 2.00 per cent from the previous level of 8.0 per cent.
Under the highest incentive bracket, exporters of diversified jute goods with at least 50 per cent local value addition, leather products, agricultural and agro-processed items, potatoes, light engineering products, 'halal' processed meat and accumulator batteries will receive 10 per cent cash assistance.
In the textile sector, exporters will get 1.5 per cent alternative cash support against customs bond and duty drawback facilities, while shipments to Eurozone countries will qualify for an additional 0.5 per cent special incentive.
Small and medium enterprises (SMEs) in the readymade garment sector, including knitwear, woven garments and sweaters, will continue to enjoy an additional 3.0 per cent cash support.
For the jute sector, incentives have been fixed at 5.0 per cent for hessian, sacking and carpet backing cloth (CBC), while jute yarn and twine exports will receive 3.0 per cent support.
Under the technology segment, software, hardware and information technology-enabled services (ITES) exports will get 6.0 per cent incentives, while freelance IT professionals will receive 2.5 per cent cash support.
The central bank also retained 6.0 per cent incentives for a number of emerging manufacturing sectors, including furniture, plastic products, paper and paper goods, pharmaceuticals, medical and surgical equipment, motorcycles, ceramic items and bicycles and their parts.
However, the BB has instructed banks concerned to ensure strict compliance and verification before disbursing the incentives.
rezamumu@gmail.com
