Government-announced 2% cash incentive on remittance sent by Bangladeshis working at foreign offices of indigenous shipping or airline companies, or a local mariner or aircraft pilot working in foreign shipping or airlines will be effective from July 1, 2019.
The Bangladesh Bank said this in a circular on Thursday.
The Foreign Exchange Policy Department of the Bangladesh Bank issued the circular letter, asking banks to inform all concerned parties of this.
On March 11 this year, the central bank extended the 2% cash incentive to remittance sent by Bangladeshis working with the United Nations, other global agencies abroad, and shipping and airline companies owned by Bangladeshis or foreigners, except for those owned by the Bangladesh government.
Thursday's circular was also a clarification of the previous circular issued on August 6, 2019, explaining how the 2% incentive will be provided.
The government allocated Tk3,060 crore from the budget for the fiscal year 2019-20 for providing the incentive. The same amount of allocation has been made in this fiscal year's budget for this purpose.
For receiving incentive on remittance worth a maximum of $5,000, no documents will be required and it will be provided instantly.
If the remittance exceeds $5,000, the receiver will have to provide the passport copy and foreign company's appointment letter of the sender. Businessmen will have to submit a copy of their trade licence. After verification, the receiver will get the incentive.
According to the Bangladesh Bank data, remittance inflow during the first two months of the current fiscal year was nearly $4.56 billion, around 50% higher when compared to that of the corresponding period of the previous fiscal year.