National Budget 2024-25: Export Incentives and Tax Measures

The National Budget for FY2024-25, presented on 6 June 2024, introduced several changes affecting exporters and importers. The headline measure was a 1.5 percentage point reduction in corporate tax for non-RMG manufacturing exporters (from 30% to 28.5%) and continued reduced rate of 12% for RMG exporters (with proper documentation). The budget also expanded the scope of the cash incentive scheme to include exports of agricultural processed foods (10%) and light engineering products (8%). On the customs side, supplementary duty on approximately 140 import items was rationalised, with reductions on raw materials used by export-oriented sectors. The budget introduced a new "Made in Bangladesh" brand development fund of BDT 100 crore to support exporters in establishing international brand presence. Notable changes include the rationalisation of VAT on local procurement of raw materials by bonded warehouse licensees, an extension of the time limit for filing duty drawback claims from 6 months to 12 months, and the introduction of advance ruling mechanisms for customs valuation.