The government has started giving 2 percent cash incentive on money remitted by expatriate Bangladeshis, said Finance Minister AHM Mustafa Kamal.
It will, however, take two to three more days for the remittance senders to enjoy the incentive as all formalities are yet to be completed, he said on Wednesday (Oct 2).
The minister was speaking to the media after a meeting of the Cabinet Committee on Government Purchase (CCGP) at the Cabinet Division in Dhaka.
Kamal said, “In the national budget for fiscal 2019-20, the government announced 2 percent cash incentive on remittance. But, the implementation of the initiative took time due to developing a system.”
Remittance senders from Jul 1 this year will also get the cash incentive, he added.
Anyone can send up to $1500 remittance in each transaction without document.
To receive the incentive for any amount above $1,500 will be required to providing a copy of passport or NID along with other information, Kamal said.
On Jun 13 this year, the government proposed the 2 percent incentive on money remitted by expatriate Bangladeshis from the FY2019-20 onwards.
Prime Minister Sheikh Hasina, who presented the budget on behalf of the finance minister Kamal in parliament, stated that the incentive will only be applicable for money sent into the country through legal channels.
Hasina said Bangladesh's remittance inflow in FY2005-06 was $4.9 billion, which tripled to reach $15 billion in 2018. before proposing an allocation of Tk 30.6 billion for the incentives.
According to Bangladesh Bank, the country received remittance worth $4.51 billion in the first quarter of the current fiscal year (2019-20) raising its foreign reserve to $32.78 billion.