The government has decided to continue export incentives and cash assistance in 43 sectors to encourage the country's export trade in the second half of FY26.
In this case, the existing sector-wise incentive rates will be applicable against goods shipped from January 1 to June 30, 2026.
According to the circular issued by the Foreign Exchange Policy Department of Bangladesh Bank, incentives will be provided as per the attached appendix for goods exported within the specified period.
The circular was issued on Monday (January 12).
Bangladesh Bank said that the terms and conditions of all previously issued FE circulars and circular letters for providing cash assistance or incentives against exports will remain in effect as usual.
In addition, the application forms for incentives against exports for the mentioned period of FY26 can be audited by an external auditor. In this regard, the relevant instructions including FE Circular No. 10 issued on July 8, 2024, will have to be followed.
According to the circular, 1.50% alternative cash assistance will be provided to the export-oriented domestic textile sector in place of pure bonds and duty draw-back.
In addition to the existing facilities for textile exports to the Eurozone, additional special assistance has also been maintained.
In addition, additional facilities will continue for small and medium-sized industries in the ready-made garment sector, including knits, wovens and sweaters.
A 0.50% incentive will be provided for the export of new products to new markets outside the US, Canada, the European Union and the UK. In addition, special cash assistance will also be available for the ready-made garment sector.
Among jute products, incentives have been set at different rates for the export of diversified jute products, hessian, sacking, CBC, jute yarn (yarn and twine). Incentives will also be maintained for the export of leather products, handmade items, and boneless cattle umbilical cord and intestines.
Frozen shrimp and other fish exports will be given incentives at the highest significant rate according to the ice cover rate.
Up to 10% incentives have been provided for the export of agricultural products, vegetables, fruits and processed agricultural products. The same rate of incentives is also available for potato exports.
Incentives will also be provided for the export of light engineering products, 100% halal meat and processed meat products, crust and finished leather produced in Savar Leather Industrial City, PET bottle flakes and polyester staple fiber produced from it.
In addition, incentives have been maintained for the export of various industrial products including ships, furniture, paper and paper products, agar-agar, API (Active Pharmaceutical Ingredients), software and ITES, pharmaceuticals, motorcycles, solar panels, ceramics, electronics, rice, tea, steel products, bicycles, cement.
Export subsidies will also remain effective under the existing policy for enterprises located in Beza, Bepza and Hi-Tech Parks.
However, the relevant conditions will be applicable in the case of special cash assistance in the RMG sector.