Govt rises incentive for remittances to 2.5 percent

The government has taken decision to increase the incentive / cash assistance to remittances sent by Bangladeshi workers from abroad to 2.5 percent.

The increased rate will be effective from January 1 of the current 2021-22 fiscal year, said a press release sent from the Ministry of Finance on Saturday..

Earlier, government’s incentives on remittances were 2 percent.

The release reads that the decision was taken considering the importance of improving the overall living standards of the people, increasing foreign exchange reserves, preventing money laundering, creating employment, remittances sent by expatriates for the economic development of Bangladesh and encouraging Bangladeshi working people working abroad for sending money home legally.

For the first time, the government decided to provide incentive / cash assistance at the rate of 2% against remittances sent by expatriates in FY 2019-20.

As a result of this policy support, remittances to banking channels have increased to US $ 18.20 billion in FY 2019-20, which was about 13 percent more than FY 2018-19.

In addition, the amount of remittances collected in FY 2020-21 was US$ 24.80 billion, which is about 36 percent more than in FY 2019-20.

The increase in government incentives in remittances is a New Year's gift from on be half of the Prime Minister for expatriate Bangladeshi workers, the press release said.