BB further simplifies outward remittance rules for industrialists


FE Team | Published: January 04, 2021 22:36:53 | Updated: January 06, 2021 10:28:16


BB further simplifies outward remittance rules for industrialists

Bangladesh Bank has further simplified the process of outward remittance of foreign exchange for industrial entrepreneurs to help expand their businesses.

The Foreign Exchange Policy Department (FEPD) of the central bank issued a circular on Monday to facilitate the payment process for goods or services bought from overseas sellers, reports UNB.

“To bring further simplification, it has been decided that authorised dealers (ADs) may remit admissible expenses up to 1 per cent of annual sales as declared in the previous year's income tax return of the concerned remitter-companies or USD 100,000, whichever is higher,” the central bank said in the circular.

The circular also referred to a previous circular issued  November  19,  2020 regarding  wider  scope  for outward  remittances  within  the  purview  of  one  per cent  of  annual  sales  as  declared  in  the previous year's income tax return of the concerned remitter-companies.

Other instructions in this regards shall remain unchanged, said the circular.

In the previous circular, the BB allowed the industries producing goods for local markets and also service sector industries to remit to  foreign exchange for legitimate other current account payments like audit fee,  certification fee, commissioning fee, testing fee, valuation fee, etc. within the purview of the BB regulation.

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