Bangladesh Bank (BB) has announced export incentive and cash assistance rates for 43 sectors for fiscal year 2026-27 (FY27), aiming to boost the country's export performance and enhance the competitiveness of key industries. The incentives, outlined in a BB circular, apply to export shipments made between July 1, 2026, and June 30, 2027.
Textile and RMG Sectors Receive Significant Incentives
Under the revised package, the export-oriented local textile sector will receive a 1.5 percent alternative cash incentive, while textile exporters to Eurozone countries will enjoy an additional 0.5 percent special assistance. Small and medium enterprises (SMEs) in the readymade garments (RMG) sector, including knitwear, woven garments, and sweaters, will receive a 3 percent incentive. Exporters expanding into new products or markets, excluding the United States, Canada, the European Union, and the United Kingdom, will be eligible for a 2 percent incentive, while the RMG sector will continue to receive 0.3 percent special cash assistance.
Jute and Leather Industries Get Substantial Support
The circular also provides significant support for the jute and leather industries. Diversified jute products will receive a 10 percent incentive, while final jute products such as hessian, sacking, and CBC will receive 5 percent, and jute yarn and twine will receive 3 percent. Leather products will qualify for a 10 percent incentive, while crust and finished leather produced at factories in the Savar Tannery Estate or those operating their own Effluent Treatment Plants (ETP) will receive 6 percent.
Agricultural and Tech Sectors Prioritized
Agricultural exports remain a priority under the scheme, with 10 percent incentives for vegetables, fruits, processed agro-products, potato exports, and 100 percent halal meat and processed meat products. In the technology and pharmaceutical sectors, software, Information Technology Enabled Services (ITES), and hardware exports will receive a 6 percent incentive, while individual freelancers engaged in software and ITES exports will be eligible for a 2.5 percent incentive. Active Pharmaceutical Ingredients (API) exports will receive 5 percent support, while pharmaceutical products will qualify for a 6 percent incentive.
Other Sectors Also Benefit
Among other sectors, accumulator batteries under HS codes 8507.10 and 8507.20 will receive a 10 percent incentive. Furniture, agar and atar, and carbon or jute particle boards made from jute sticks will receive 8 percent. Ship exports, plastic products, and handmade goods such as products made from hogla, straw, and garment waste will receive 6 percent, while rice, bicycles and bicycle parts, and cement sheet exports will receive a 3 percent incentive.
Application Process and Guidelines
Bangladesh Bank has stated that applications for export incentives must be audited by audit firms approved by the central bank in line with existing regulations. All other terms and conditions governing the disbursement of export cash assistance, as issued through previous foreign exchange circulars, will remain unchanged. The central bank has instructed all authorized dealer banks to inform their respective clients about the updated incentive rates and operational guidelines.
