Cash incentive on remittance increased to 2.5%: Finance Minister

The government has increased cash incentive on remittance to 2.5 per cent from 2 per cent to encourage migrants to use proper channels to send money home.

"We have decided to increase the cash incentive to 2.5 per cent from 2 per cent to increase the remittance inflow through proper channel," said Finance Minister AHM Mustafa Kamal said today.

The new cash incentive will be effective from today, Kamal said at a virtual press briefing.

"We are expecting the remittance inflow would increase to $26 billion this fiscal year while it was around $24 billion in last fiscal year," he noted.

He also said the remittance, the hard-earned money of the migrant workers, is making a special contribution to the country's economy.

The government's decision on incentive came as the remittance flow to the country has been falling sharply for some months as the expatriates continue to prefer informal channels for sending their money.

According to data from Bangladesh Bank, expatriate Bangladeshis sent $1.55 billion in November, down 5.48 per cent from a month earlier and 25 per cent year-on-year.

This was the lowest remittance earnings since June 2020, when the amount was $1.83 billion.