Regulatory Alerts2025-07-10
Added
FEPD Circular No. 28: Export Subsidy/Cash Incentive from July 01, 2025 to December 31, 2025 for the financial year 2025-2026
The document establishes the new rates for export subsidy and cash incentive applicable from July 01, 2025 to December 31, 2025, superseding the previous rates notified in Bangladesh Bank Circular No. 10 dated January 08, 2024. It specifies incentive percentages for 43 distinct sectors, including 1.50% for export-oriented pharmaceuticals, 10.00% for diversified jute products, and tiered rates for fish exports based on FOB value. The circular also details specific incentives for leather, jute wood products, salt-based products, and renewable energy sectors, while maintaining previous incentives for specific eco-friendly and high-tech industries.
Bangladesh Bank Main General Department Website: www.bb.org.bd
Bangladesh Bank Circular No. 28
Export Subsidy/Cash Incentive
From July 01, 2025 to December 31, 2025 for the financial year 2025-2026
In continuation of the previous circulars for the export subsidy/cash incentive, the new rates for export subsidy/cash incentive for the export-oriented sectors under the current financial year will be applicable from July 01, 2025 to December 31, 2025.
- The export subsidy/cash incentive rates for the current financial year 2025-2026 will be determined under the following table. Under this table, the export subsidy/cash incentive rates for the export-oriented sectors will be determined in accordance with the Bangladesh Bank Circular No. 10, dated January 08, 2024, which was issued by the Governor of Bangladesh Bank. The export subsidy/cash incentive rates for the export-oriented sectors will be determined in accordance with the circulars issued by the Governor of Bangladesh Bank from time to time. In case of any discrepancy in the circulars, the latest circular shall prevail.
Copy for information and necessary action:
- Governor
- Deputy Governor
- Executive Directors
- Additional Directors General
- Directors General
- Deputy Governors
- Additional Governors
- Chief Cashiers
- Chief Controllers of Accounts
- Chief Internal Auditors
- Chief Information Security Officers
- Heads of all Domestic Offices
- All Regional Offices
- All Zonal Offices
- All District Offices
- All Branch Offices
- All Sub-Offices
- All Counter Offices
- All Service Offices
- All Support Offices
Subject: FEPD Circular No. 28/2025
Export Subsidy/Cash Incentive for Exported Products from July 01, 2025 to December 31, 2025
| Sr. No. | Sector | Rate (%) |
|---|---|---|
| 1. | Export-oriented Pharmaceutical Sector: Customs Fund and Duty Draw-back Cash Incentive | 1.50 |
| 2. | Export-oriented Pharmaceutical Sector: Cash Incentive for Export of Drugs | 1.50%<br>Other Cash Incentive: 0.50 |
| 3. | Export-oriented Textile Sector (including Net, Woven and Knitted): Small and Medium Enterprises (SMEs) under the Textile Sector | 3.00 |
| 4. | New Product/New Market (Pharmaceutical): Cash Incentive for Introduction (Japan/Korea/EU/USA) | 2.00 |
| 5. | Textile Sector: Cash Incentive for Export | 0.30 |
| 6. | Jute Products Export Subsidy:<br>a) Diversified Jute Product<br>b) Jute Finished Products (Hessian, Sacking and Roving)<br>c) Jute Yarn (Jute Yarn Spinning)<br>(Minimum 50% value addition of the diversified jute products defined under the Jute Act, 2017 must be used) | 10.00<br>5.00<br>3.00 |
| 7. | Leather Products Sector: Export Promotion (Non-Refundable Sales Tax on Inputs) | 10.00 |
| 8. | Leather Products (Shoes, Bags, Belts/Gloves, Garments/Leather, Garments/Leather, Garments/Leather, etc.) Export Subsidy | 6.00 |
| 9. | Export Promotion for Live Animals (Cattle, Buffalo, Sheep and Goat) (Slaughtered) | 6.00 |
| 10. | Fish and Other Fish Export Subsidy:<br>a) Fish Export based on FOB Value:<br> - Up to 20%<br> - Above 20% to 30%<br> - Above 30% to 40%<br> - Above 40%<br>b) Other Fish Export based on FOB Value:<br> - Up to 20%<br> - Above 20% to 30%<br> - Above 30% to 40%<br> - Above 40% | 8.00<br>7.00<br>6.00<br>4.00<br>3.50<br>2.50<br>2.00<br>1.50 |
| 11. | Agricultural (Seeds/Seedlings) and Horticultural (Vegetable Seeds) Export Subsidy | 10.00 |
| 12. | Potato Export Subsidy | 10.00 |
| 13. | Salt-based Products Export Subsidy | 10.00 |
| 14. | 100% Export-oriented and 100% Export-oriented Processed Textile Products Export Subsidy | 10.00 |
| 15. | Leather Tanneries and Leather Processing Industries:<br>a) Crust Export Promotion<br>b) Finished Leather Export Promotion | 6.00<br>6.00 |
| 16. | a) Export Promotion for Import-Substitution Products<br>b) Export Promotion for Import-Substitution Products for Domestic Consumption | 6.00<br>6.00 |
| 17. | Export Promotion for Jute Products | 6.00 |
| 18. | Export Promotion for Jute Wood Products and Jute Products | 8.00 |
| 19. | Export Promotion for Sugar and Salt-based Products | 8.00 |
| 20. | Export Promotion for Poultry Products | 8.00 |
| 21. | Export Promotion for Plastic Products | 6.00 |
| 22. | Export Promotion for Paper and Paper-based Products | 6.00 |
| 23. | Export Promotion for Wood and Wood Products | 8.00 |
| 24. | Export Promotion for Active Pharmaceutical Ingredients (API) | 5.00 |
| 25. | Export Promotion for Lithium-ion Batteries (HS code: 8507.10 and 8507.20) | 10.00 |
| 26. | Export Promotion for Footwear and Bags made of Synthetic and Artificial Leather | 8.00 |
| 27. | a) Export Promotion for Garments, ITES (Information Technology Enabled Services) and Services<br>b) Export Promotion for Garments, ITES and Services for Specific Buyers | 6.00<br>2.50 |
| 28. | Export Promotion for Medical Devices (Diagnostic/Surgical Instruments and Appliances) | 6.00 |
| 29. | Export Promotion for Dental Products | 6.00 |
| 30. | Export Promotion for Photovoltaic Modules | 6.00 |
| 31. | Export Promotion for Jewelry and Jewelry Products | 6.00 |
| 32. | Export Promotion for Ceramic Products | 6.00 |
| 33. | Export Promotion for Toys | 7.00 |
| 34. | Export Promotion for Crab and Lobster (Fresh, Frozen and Live) | 6.00 |
| 35. | Export Promotion for Galvanized Sheet/Coils (Coated with zinc, Coated with Aluminium and Color Coated) | 6.00 |
| 36. | Export Promotion for Construction Products (Bricks, Tiles, Blocks, etc.) | 5.00 |
| 37. | Export Promotion for Consumer Electronics, Electrical Appliances and Home Appliances | 6.00 |
| 38. | Export Promotion for Tea | 3.00 |
| 39. | Export Promotion for Tea Products | 2.00 |
| 40. | Export Promotion for MS Steel Products | 2.00 |
| 41. | Export Promotion for Biogas and its Pipes | 3.00 |
| 42. | Export Promotion for Cement Blocks | 3.00 |
| 43. | Export Promotion for Industries in Eco-friendly Zones (Eco, Repco and High-tech Parks):<br>(FEPD Circular No. 34/2021)<br>1) Export Promotion for Industries under the Export Promotion Fund (EPF) Circular No. 01, dated January 07, 2020 (excluding cash incentives for Eco-friendly Parks)<br>2) Export Promotion for Horticultural Crops of Type-A and Type-B Industries under the Export Promotion Fund (EPF)<br>3) Export Promotion for Industries under the Export Promotion Fund (EPF) Circular No. 01, dated January 07, 2020 (excluding cash incentives for Eco-friendly Parks) and other products of Category (C) Industries | 2.00<br>2.00<br>0.30 |
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Subject: FEPD Circular No. 28/2025
| Sr. No. | Sector | Rate (%) |
|---|---|---|
| 17. | Export Promotion for Jute Products | 6.00 |
| 18. | Export Promotion for Jute Wood Products and Jute Products | 8.00 |
| 19. | Export Promotion for Sugar and Salt-based Products | 8.00 |
| 20. | Export Promotion for Poultry Products | 8.00 |
| 21. | Export Promotion for Plastic Products | 6.00 |
| 22. | Export Promotion for Paper and Paper-based Products | 6.00 |
| 23. | Export Promotion for Wood and Wood Products | 8.00 |
| 24. | Export Promotion for Active Pharmaceutical Ingredients (API) | 5.00 |
| 25. | Export Promotion for Lithium-ion Batteries (HS code: 8507.10 and 8507.20) | 10.00 |
| 26. | Export Promotion for Footwear and Bags made of Synthetic and Artificial Leather | 8.00 |
| 27. | a) Export Promotion for Garments, ITES (Information Technology Enabled Services) and Services<br>b) Export Promotion for Garments, ITES and Services for Specific Buyers | 6.00<br>2.50 |
| 28. | Export Promotion for Medical Devices (Diagnostic/Surgical Instruments and Appliances) | 6.00 |
| 29. | Export Promotion for Dental Products | 6.00 |
| 30. | Export Promotion for Photovoltaic Modules | 6.00 |
| 31. | Export Promotion for Jewelry and Jewelry Products | 6.00 |
| 32. | Export Promotion for Ceramic Products | 6.00 |
| 33. | Export Promotion for Toys | 7.00 |
| 34. | Export Promotion for Crab and Lobster (Fresh, Frozen and Live) | 6.00 |
| 35. | Export Promotion for Galvanized Sheet/Coils (Coated with zinc, Coated with Aluminium and Color Coated) | 6.00 |
| 36. | Export Promotion for Construction Products (Bricks, Tiles, Blocks, etc.) | 5.00 |
| 37. | Export Promotion for Consumer Electronics, Electrical Appliances and Home Appliances | 6.00 |
| 38. | Export Promotion for Tea | 3.00 |
| 39. | Export Promotion for Tea Products | 2.00 |
| 40. | Export Promotion for MS Steel Products | 2.00 |
| 41. | Export Promotion for Biogas and its Pipes | 3.00 |
| 42. | Export Promotion for Cement Blocks | 3.00 |
| 43. | Export Promotion for Industries in Eco-friendly Zones (Eco, Repco and High-tech Parks):<br>(FEPD Circular No. 34/2021)<br>1) Export Promotion for Industries under the Export Promotion Fund (EPF) Circular No. 01, dated January 07, 2020 (excluding cash incentives for Eco-friendly Parks)<br>2) Export Promotion for Horticultural Crops of Type-A and Type-B Industries under the Export Promotion Fund (EPF)<br>3) Export Promotion for Industries under the Export Promotion Fund (EPF) Circular No. 01, dated January 07, 2020 (excluding cash incentives for Eco-friendly Parks) and other products of Category (C) Industries | 2.00<br>2.00<br>0.30 |
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