CORONA VIRUS

STIMULUS PACKAGES
FROM

BANGLADESH GOVERNMENT
 TABLE OF CONTENTS
Chapter Contents Page No.
Synopsis of Government Stimulus Packages for COVID 19 1

A-1 Working Capital under Loan/Investment Scheme for Industry & Service Sector (except CMSME) 2-4
Working Capital under Loan/Investment Scheme for Cottage, Micro, Small, & Medium Size
A-2 Entities (CMSME) 5-8

A-3 Export Development Fund Expansion (EDF) 9

A-4 Pre-Shipment Credit 10-11

A-5 Salary & Wages for Workers & Staff of Export Oriented Industry 12-13

A-6 Agriculture Sector 14-15

A-7 Low-Income Professionals, Farmers, Ultra-Small Business 16-17

A-8 Other Economic Stimulus Measures 18-21

A-9 Tax Relief Measures 22

References 23-24

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SYNOPSIS OF GOVERNMENT STIMULUS PACKAGES FOR COVID 19

Total Volume Interest B. Bank Refinancing scheme &

Details of Sector TOR (BDT Cr.) Rate Tenor Repayment Tenor (BDT Cr.)

Industry & Service Sector A-1 30,000 4.5% 1 year 1 year 15,000 and Tenor – 3 years

Cottage, Micro, Small &

Medium Enterprise - CMSME A-2 20,000 4% 1 year 1 year 10,000 and Tenor – 3 years

Export Development Fund Based on

Expansion (EDF) A-3 12,750 2% Export 12,750

Pre-Shipment Credit A-4 5,000 7% 1 year 5,000 and Tenor – 3 years

Workers & Staff of Export 2 Years Inc

Oriented Industry A-5 5,000 0% 3 months 6M GP 5,000 and Tenor – 2 years

1.5 Years 5,000 and disbursement should

Agriculture Sector A-6 5,000 4% Inc 6M GP be made within Sep 30, 2020

Low-income professionals, 1 Year (IGA) or

farmers, ultra-small business A-7 3,000 9% 2 Years (SB) 10,000 and Tenor – 3 years

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A-1: WORKING CAPITAL UNDER LOAN/ INVESTMENT SCHEME FOR INDUSTRY &
SERVICE SECTOR (EXCEPT CMSME)
 Total Volume : BDT 30,000 Crore
 Rate of Interest : 4.5% to be borne by borrower + 4.5% to be borne by
Govt. = 9%
 Criteria & Procedure
 Bank or NBFI shall approve as per their own loan/investment guidelines.
May be decentralized at branch level. Bank shall provide these loans on a
bank-client relationship basis
 Bank/NBFI need to submit previous month's Approved loan/investment
information to Bangladesh Bank (BB)’s Policy and Regulatory department
within 10th of every month.
 Bank/NBFI shall create a special monitoring cell to manage this.

 Eligibility
 Loan defaulters are not eligible. Moreover, loan rescheduled more than 3
(three) times are also not eligible.
 Both New & existing borrowers need to submit the latest audited financial
statements as per Guidelines on Internal Credit Risk Rating System for Banks
(ICRRS) of BB and rating must be “Marginal” at least.
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 Bank wise Loan/Investment Limit and Tenor
 Banks/NBFIs shall place demand for funds based on loan allowed as working Capital for different industry/Service sector till 31st
December 2019.
 To execute the loan/ investment properly and to maintain balancing in broad spectrum, BB can increase/ decrease the limit.
 Though the tenor of the loan package is 3 (three) years, every client shall enjoy maximum1 (one) year subsidized rate facility under
this package.

 Loan/Investment limit and Tenor for Industry & Service Sector

 For existing Industry(s): Maximum 30% (percent) of their respective existing loan limit.
 For New Industry/ Borrower(s): Maximum 30% (percent) of their respective allowable loan limit. The allowable loan limit would be
determined by the bank/NBFI
 Tenor of Loan would be 1 (one) year. It can’t be renewed. But Bank can extend the tenor under its own discretion. While, the
subsidized rate would be allowed for 1 (one) year only and won’t be extended.

 Loan Recovery Process

 Bank shall solely be liable to collect the disbursed loans.
 To avail this facility, loan outstanding along with interest can’t exceed the sanctioned loan limit. In case of exceeding, it must be
paid/adjusted within 5 (five) working days of each quarter.
 In case of non-performing loans, bank shall make provision upon classification as per guideline

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 Application, Approval, Distribution & Monitoring system of Loan/Investment
 Industry/Service sector entity shall apply to respective bank for Loan.
 Bank shall sanction/approve loan within its limit as per its own guidelines upon analyzing credit risk of each applicant.
 Bank shall prioritize the most affected business in case of loan demand is more than its limit. In that case Bank shall follow FIFO
method to select the most affected industry/entity. Customers are obliged to make the repayment of loan within the tenure, which
can’t be under any circumstances more than 1 (one) year. Since the scheme is for 3 (three) years, less affected industry/business
entity shall come later under this package.
 Single Borrower exposure limit (as per BB guidelines) must be maintained to sanction/approve loan.
 Upon receipt of consent letter from BB, Bank shall disburse loan as per its rules regulations and guidelines
 Bank shall submit last month's approved loan/investment information to BB’s Policy and Regulatory department (BRPD) within 10th
of every month.

 Restriction on Utilization of Loan/ Investment

 Loan from this package can’t be used to adjust/repay the existing Loan.
 This Loan can’t be used for business expansion inclusive of BMRE or
new business.

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A-2: WORKING CAPITAL UNDER LOAN/INVESTMENT SCHEME FOR COTTAGE,
MICRO, SMALL & MEDIUM SIZE ENTITIES (CMSME)

 Total Volume: BDT 20,000 Crore

 Rate of Interest: 4% to be borne by borrower + 5% to be borne by Govt. = 9%
 Criteria & Procedure
 Bank or NBFI shall approve as per their own loan/investment guideline. May be
decentralized at branch level.
 Bank/NBFI need to submit previous months’ approved loan/investment information
to BB’s “SME & Special Department” within 10th of every month.
 Eligibility
 Loan defaulters are not eligible. Moreover, loan rescheduled for more than 3 (three)
times are also not eligible.
 Cottage and Micro Industries (Existing or new borrower) need to submit latest
financial statements or previous year production/sales/turnover written document.
 Small Industry (Existing or new borrower) need to submit latest audited financial
statements or reliable financial statements.
 Medium Industry (Existing or new borrower) need to submit the latest audited
financial statements according to BB Guidance on Internal Credit Risk Rating System
for Bank (ICRRS) and rating must be “Marginal” at least.

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 Restriction on utilization of Loan/ Investment
 Corona affected businesses can only use this loan/investment that require working capital.
 Loan from this package can’t be used to adjust/repay the existing Loan.
 This Loan can’t be used for business expansion inclusive of BMRE or new business.

 Bank wise loan/Investment limit and Tenor

 Banks/NBFIs shall place demand for funds based on loan/investment facility allowed as working Capital for a maximum 10% of
CMSME debt status based on 31st December 2019 in 1 (one) financial year.
 Every Bank/NBFI shall inform the “SME & Special Programs Department” of BB within 3 (Three) months of the issuance of this
circular regarding their respective limits.
 To execute the loan/investment properly and to maintain balancing in broad spectrum, BB can increase/ decrease the limit.
 If the amount of loan/investment given by the Banks/NBFIs exceeds the prescribes limit, the Govt. shall not provide any subsidy on
the excess loan/investment.
 Though the tenor of the loan package is 3 (three) years, every client shall enjoy maximum1 (one) year subsidized rate facility from
the Govt. against given loan.
 Production & Service-related sector shall get priority.
 Under this package Production, Service & Trade sector shall get respectively 50%, 30% & 20% of this loan/investment. 70% to
Cottage, Micro and Small and 30% to Medium Industry.
 At least 5% needs to be distributed to women entrepreneurs.
 At least 15% needs to be distributed in rural areas.

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 Loan/Investment limit and Tenor for CMSME
 Working capital shall be calculated based on financial report, Production, Sales Report of latest financial year(s) for businesses
affected after Jan-2020.
 For existing Production or Service Industry/Borrower(s): Lower of 30% of existing outstanding loan or 50% of average operating
expense for the last 3 (three) years as per FS.
 For existing Trader/Borrower(s): 25% of last 3 (three) years average sales as per FS. Maximum limit shall be BDT. 1(one) Crore.
 For New Production or Service Industry/Borrower(s): Lower of 30% of existing outstanding applicable limit or 50% of turnover.
 For New Trader/Borrower(s): 25% of last year turnover subject to maximum BDT. 1 (one) Crore.
 Tenor of Loan would be 1 (one) year. It can’t be renewed. But Bank/NBFI can extend the tenor under its own discretion. While, the
subsidized rate would be allowed for 1 (one) year only and won’t be extended.

 Application, Approval, Distribution & Monitoring system of Loan/Investment

 Entrepreneurs affected by the outbreak of Corona Virus can apply for a loan/investment in any scheduled Bank/NBFI.
 After ensuring that the applicant has been affected, the scheduled Bank shall accept the loan/investment approval after analyzing
the loan/investment risk under its own guidance.
 Once the application is approved, Bank/NFBI shall quickly disburse the loan/investment form its funds.
 Instructions issued by BB regarding “Single Customer Loan limit” shall be applicable for providing loan/investment facility.
 The special monitoring cell “SME & Special Program Department” of BB shall be able to inspect the loan/investment activities at any
time.
 Bank/NBFI shall be subject to a fine @ 2% for submitting wrong information and not be entitled to interest subsidy by Govt.
 Bank/NBFI shall create a special monitoring cell to manage this.

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10
 Loan/Investment Recovery Process
 Working capital loan/investment is continuous, so it will be paid after the end of the period.
 Loan Outstanding can’t be more than the sanctioned limit. But under any circumstances if it exceeds due to charge of interest, the
borrower must pay this within 5 (five) working days of the end of the quarter.
 Collection is the responsibility of the scheduled bank/NBFI.
 Existing guideline on loan/investment classification and provision requirement should be properly followed.

 CMSME Criteria
Industry Type
Net Fixed Assets
Sl No (without Land & Building) 
Number of Workers 
Main Head Sub Head
01 Cottage Industry   Below 10 Lac Max 15 nos
Manufacturing 10 Lac – 75 Lac 16-30 nos or less
02 Micro Industry
Service Below 10 Lac Max 15 nos
Manufacturing 75 Lac – 15 Crore 31-120 nos
03 Small Industry
Service 10 Lac – 2 Crore 16-50 nos
Manufacturing 15 Crore – 50 Crore 121-300 nos (in case of RMG – 1000 nos
04 Medium Industry
Service 2 Crore – 30 Crore 51-120 nos

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A-3: EXPORT DEVELOPMENT FUND EXPANSION (EDF)

 Volume : BDT 12,750 Crore or USD $1.5 Billion

Before Stimulus After Stimulus Net Increase
USD $ 3.5 Billion USD $ 3.5 Billion USD $ 1.5 Billion

Objective: To facilitate raw materials imports under back to back LC

 Rate of Interest
Particulars Before Stimulus After Stimulus
BB to Commercial Banks 6 months USD 1% per anum
LIBOR+0.50%
Bank to Industry / 6 months USD 2% per anum
Business Entities LIBOR+1%

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A-4: PRE-SHIPMENT CREDIT (PSC)
 Total Volume : BDT 5,000 Crore
 Objective: To facilitate Export oriented industry to earn foreign exchange
and to mobilize the Economic activities.
 Rate of Interest : Borrower shall Pay 6% to Bank whilst Bank shall pay 3% to BB.
Bank can’t charge any additional fee beyond the guidelines for charges of BB.
 Eligibility
 Only Export Oriented Industry (any sector)
 Loan shall be granted on case to case as per existing rules and regulations based
on bank-clientele relationship.
 Default borrowers are not eligible.
 Refinancing shall not be granted if the proceeds of any export Oriented industry
is overdue as per GFET time line.
 Duration
 Maximum tenor - 3 (three) years (Revolving). Any Customer can avail numerous loans of different tenor, but should
not be for more than 1 year .
 Limit/Volume/ Amount
 PSC = Export Contract value – BTB Value – Accessories values. However, this shall not exceed 10% of commercial
invoice value.
 Bank can disburse fund before shipment upon production of exportable goods. However, fund from this re-financing
Scheme shall be established upon shipment of goods
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 Sustainable finance department of BB reserves the re-financing volume /limit.
 Application Process
 Based on disbursed fund to customer, Bank shall apply at every week to GM, Sustainable finance department, BB to avail fund on
previous week shipped good along with Loan disbursement certificate, statement of Loan disbursed, DP Note & letter of continuity
to pay the applied fund along with interest, Export LC copy, Consignment or commercial invoice copy(s), Bill of Lading (B/L)/ Airway
Bill/ FCR (Forwarder Cargo Receipt), Bill of Export copy, Certificate of completion of manufacturing of exportable goods, any other
documents as required time to time by BB.

 Loan Recovery & Supervision

 BB shall adjust/deduct from current Account of Banks after every 120 days from date of disbursement.
 BB may charge Lending banks additional 5% interest along with interest, if it comes to the knowledge of BB that banks fails to utilize
this fund properly.
 Banks shall solely be responsible to realize the fund from customer.
 Fund from this scheme shall not be applicable before shipment of goods.
 If the installment of a loan is not paid on time, the loan shall have to be classified as per the prevailing norms and the borrower shall
be considered as a defaulter. In this case penalty interest at the rate of 2% shall be charged on the outstanding installment.
 Provision and classification need to be made as per guideline if any customer fails to repay the loan timely.

 Other Terms & Conditions

 Single borrower exposure limit is applicable for sanctioning credit of any customer or group.
 Bank shall select the customer, loan sanction, disbursement, documentation, debt-equity ratio as per its own regulation and bank
clientele relations.

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A-5: SALARY & WAGES FOR WORKERS & STAFF OF EXPORT ORIENTED
INDUSTRY
 Total Volume: BDT 5,000 Crore
 Objective: To ensure loan for export oriented industries in order to pay
wages and salaries of workers and staffs (as per definition under Bangladesh
Labor Law 2006)
 Rate of Interest: Borrower shall pay 0% (Zero percent) interest rate. The
loans are non-interest bearing.
 Eligibility
 Export Oriented Industries who exports 80% or above. B & C type industry of
EPZ, SEZ and Hi-Tech Park.
 The factories which paid salaries and wages for last 3 (three) months period (i.e.
Dec’19, Jan’20 and Feb’20) shall be considered as active factory.
 Certificate from BGMEA, BKMEA, etc. required.
 Applicants/borrowers may apply for loan with the bank through which salary and
wages are disbursed.
 Active client of the bank through whom the factory exported goods or paid salary
and wages for last 3 (three) months.
 Applicants/borrowers with multiple bank accounts for salary and wages
disbursement may apply to multiple banks for a syndicated loan.

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 Restriction on Utilization of Loan/ Investment
 No salaries of executives/ management personnel can be paid from this fund.
 If a factory lays off their employees’, they shall not be entitled to this fund.
 Not applicable for deemed exporters (they shall fall under CMSME package).
 No cash transactions are allowed.
 Lending Procedure
 Banks can only disburse maximum three months salary based on average of last 3 (three) months (Dec’19, Jan’20 and Feb’20)
 In determining the monthly demand for salary & wages, the bank shall examine the salary & wages sheet given by the eligible
borrower for the last 3 (three) months (i.e. Dec’19 to Feb’20) of the industry and the amount of loan applied for the respective
month shall not exceed the average salary & wages given in 3 (three) months.
 Banks shall mandatorily collect and inspect National Identity Card (NID) or birth certificate in absence of NID in order to disburse
salaries and wages.
 The applicant need to apply to bank by mentioning PF and tax of the workers’ and employees’ separately through Form-D. Bank shall
remit net money to workers and employees’ account including MFS (Mobile Financial System) account.
 Bank Charges & Loan Recovery Process
 Lending banks may charge a one-off 2% service charge. No charges are allowed other than bank service charges and any charges
levied by the Govt.
 The borrower shall repay the entire loan to the bank in 18 (eighteen) equal installments in a total of 2 (two) years including 6 (six)
months grace period after taking the last loan installment (i.e. the loan taken against the salary & wages for the month of June
2020).
 If the installment of a loan is not paid on time, the loan shall have to be classified as per the prevailing norms and the borrower shall
be considered as a defaulter. In this case penalty interest at the rate of 2% shall be charged on the outstanding installment.
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A-6: AGRICULTURE SECTOR
 Total Volume: BDT 5,000 Crore
 Objective: Agricultural loan to Farmers and Traders
 Rate of Interest : Borrower shall pay @ 4% Interest to Bank whilst Bank shall
pay to BB @ 1%
 Credit Limit
 Existing clients – Bank Can extend 20% additional limit of existing sanctioned
amount. Loan under this package can’t be utilized to repay/adjust the existing
loan.
 New Clients – Bank shall decide the credit limit.
 Maximum limit to any customer – Tk. 5.00 crore under this package
 Duration
 Maximum 18 months [12 months + 6 months (grace Period)]- applicable for both
banks and customer.
 Allowed Sectors
 Food grain and harvesting
 Horticulture (flower Farming)
 Pisiculture (Fish Farming)
 Poultry, Dairy & Livestock Farming
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 Application Procedure
 To avail refinance, Bank shall claim to General Manager, Agricultural loan department, BB along with required papers and
documents.
 Such claims can only be made by banks upon payment of loan to customer.

 Loan Recovery Process

 Banks/NBFIs shall make the repayment of principal and Interest to BB within the timeline.
 Bank shall solely be responsible to recover the loan from customer.
 In case of default by any bank, BB shall realize the payment by adjusting the current account of respective bank.
 Banks shall be obliged to pay additional 2% interest to BB, if Bank fails to utilize this fund properly.

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A-7: LOW INCOME GROUP
 Total Volume : BDT 3,000 Crore
 Objective: To support farmers, low-income professionals, ultra-small
business
 Rate of Interest : Borrower shall pay @ 9% in both cases (Micro credit for
income generation and Micro credit for Enterprises) – Reducing balance
method shall be applied to calculate interest.
 BB shall issue loan to participating Bank @1%
 Bank shall issue loan/ fund to Micro Credit @ 3.5%
 Eligibility Criteria
 Low-income Professionals
 Low-income generating individual or enterprise
 Farmers
 Ultra Small business
 Poor/ultra-poor people, people from deprived communities & deprived
women shall be preferred
 Duration
 Micro Credit for IGA – 1 year (inclusive of Grace period)
 Micro Credit for Small Enterprise - 2 years (inclusive of Grace period)
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 Credit Limit
 Micro-Credit for Income Generation –
 In case of individual – TK. 75,000.00 (Maximum)
 In case of Group of persons – Up to Tk. 300,000.00 (Maximum)

 Micro-Credit for Enterprises–

 In case of individual – TK. 10,00,000.00
 In case of Group of persons – Up to Tk. 30,00,000.00

 Group of Persons should consist of at least 5 persons.

 If group members are more than 5, the credit limit can be increased accordingly
 An individual or group shall not be eligible for both categories. Individual or group of persons can enjoy facility under any one
category.

 Other terms & Conditions

 Previous year’s business activities need to be assessed to allow/ grant loan under this scheme.
 Loan can only be granted to existing samity.

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 A-8: OTHER ECONOMIC STIMULUS MEASURE
 Buy-Back of Government Securities
 BB announces to buy back Government securities from secondary market. As some
banks and financial institutions act as primary dealer of such securities, this shall help
ease their liquidity.
 Reduction in liquidity ratio requirements for banks
 Required Cash Reserve Requirement (CRR) of the banks reduced from 5.5% to 5% on
bi-weekly average basis and 5% to 4% on a daily basis. CRR is further reduced to 4%
on bi-weekly average basis and 3.5% on daily basis effective from 15 April.
 Reduction in Repo interest rate
 BB’s Repo interest rate reduced from 6% to 5.75%. The repo rate is further reduced to
5.25% effective from 12 April.

 Long Term Special Repo for Banks

 Under the special repurchase agreement (repo), Banks will enjoy funds from the central bank for one year, up from 28 days at
present, by keeping their Treasury bills and bonds as collateral.
 Banks will have to place their T-bills and bonds after securing their statutory liquidity ratio (SLR) as collateral.
 Banks SLR would be 13 per cent of their total time and demand deposit. Excluding their SLR banks now hold T-bills and bonds worth
about Tk 72,000 crore. And they can get up to 85 per cent of the face value of their T-bills and 5 per cent of their T-bonds.
 The base interest rate on the special repo is 5.25 per cent or equivalent to the policy rate set by the central bank. But the actual rate
will be fixed at the auction from where the lenders will get the fund.
 This interest rate may be slightly higher than the policy rate, and the auction committee of the central bank will take the final decision
to this end. 21
 Extension of Usance Period
 Banks permitted to extend LC Usance (payment) periods for import of raw materials, agricultural implements and chemical fertilizers
(from 180 days to 360 days) and of life saving drugs (from 90 days to 180 days).

 Promotion of Payment Services

 Mobile financial services - monthly transition limit increased from approximately USD 900 to USD 2,300 and charges waived on
cashing out (withdrawal) of up to USD 12 per day
 Contactless debit and credit cards – daily transaction limit increased from approximately USD 35 to USD 60
 Waiver of charges to merchants when accepting debit and credit card payments for medicine and other essentials, subject to
approximately limit of USD 180 per day and USD 1,200 per month.

 Postponement of Charging Interest on Loans

 BB instructed banks not to charge customers interest (on loans disbursed before 1 April 2020) until further notice.

 Working Capital Loan from Abroad for Foreign Owned/Controlled Companies

 BB is permitting foreign owned/controlled companies operating in Bangladesh to take short term working capital loans, for the
tenure of one year extendable to another one year, from their parent companies/shareholders for funding payments of 3-month
salaries. The facility is not applicable for those companies availing loan from BDT 50bn stimulus package.

 ADR (Advance Deposit Rate) / IDR (Investment Deposit Rate)

 ADR rate increased to maximum 87% from 85% and IDR for Islamic banking has increased to 92% from existing 90%. 22
 Quarterly Repayment for Imports Under Supplier’s/Buyer’s Credit
 BB has decided that bullet repayment shall be permissible (earlier permissible only for import of raw materials upto USD 0.5m with
Usance period between 6 months to 1 year) for other Usance imports under supplier’s/buyer’s credit, Usance period can be below 6
months or above 1 year.
 Ban on Ship Imports
 Ministry of Industries imposes a two-week ban on the import of ships from 23 March.
 Moratorium of Loan Payment
 BB announced a moratorium on loan payments until 30 June 2020 (meaning borrowers shall not be in default of their loans during
this period)
 Waiver on Credit Card
 The banks are instructed not to deduct any fees/charges/interest against late payment of credit card bill from 15 March 2020 to 31
May 2020.
 Maximum Margin Limit for Importing Baby Food
 BB has set the margin limit to 5% for opening LC for import of food for babies .
 Waiver Import Duty and Taxes on 12 Medical Items
 Govt. waived the full import duty, regulatory duty, supplementary duty, VAT, advance tax and advance income tax on medical items
under 17 HS codes (isopropyl alcohol, COVID-19 test kits, disinfectants, three-layer surgical masks, protective garments made from
plastic sheeting, plastic face shields, protective garments for surgical or medical use, full body woven suit impregnated with plastics,
medical protective gear and protective spectacles and goggles) which shall remain in force until 30 June.

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 Advance Against Imports of Life Saving Drugs
 Banks may, without repayment guarantee, advance credit up to USD 500k for import of coronavirus related life-saving drugs, medical
kits/equipment and other essential medical items.

 Remittance Against Documents Received Directly by Importers

 Authorized Dealers (ADs) are allowed to execute import payments against documents received directly by importers provided that
the goods have been cleared from the customs, supported by authenticated copy of the customs bill of entry.

 Raw Materials Import on 360 days Usance Basis for Power Generating Enterprise
 360 days Usance period is also permissible to import Heavy Furnace Oil(HFO)/ High Sulphur Fuel Oil (HSFO) as raw materials for own
use of power generating enterprises.

 Settlement of Payment against Inland LCs in Foreign Exchange

 To facilitate settlement of inland LCs amid COVID-19 related disruptions, Ads may settle the payments through their Nostro accounts.
Considering the small volume of transactions, ADs should have arrangements with their correspondents abroad for the transactions
with minimum charges.

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A-9: TAX RELIEF MEASURES
 Lifting of Import Taxes on Medical and Protective Items:
 National Board of Revenue (NBR) waives of 12 types of safety products and test kits from import duties and taxes until 30 June 2020.
 Changes of Withholding Tax on Cash Subsidy:
 withholding tax rate on export cash subsidy reduced from 10% to 5%
 Tax Exemption to Private Power Generating Companies (except Coal based)
 Commercial Production starts between Jan 1, 2020 to Dec 31, 2022
 Income of PPGC is exempt up to 31 December 2034.
 Income of foreign nationals exempt for 3 years;
 Interest payment on foreign loans can be paid off without Withholding Tax (WHT);
 Royalty, Technical Know-how and Technical assistance fees payments can be made without WHT;
 Capital Gains arising from divestment has waived
 Commercial Production starts between Jan 1, 2023 to Dec 31, 2024: Duration of exemption is 10 (ten) years at following rate(s)

Sl No Tax Exemption Duration Rate (%)

1 For First 5 (five) years from the date of commercial operation (1 st – 5th year) 100%
2 For next 3 (three) years (6-8th year) 50%
3 For next 2 (two) years (9-10th year) 25%
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REFERENCES
BRPD FE
• BRPD Circular No. 04; Date: 19 March 2020  • FE Circular No. 15; Date: 23 March 2020  
• BRPD Circular No. 09; Date: 23 March 2020  • FE Circular No. 16; Date: 23 March 2020 
• BRPD Circular No. 07; Date: 2 April 2020  • FE Circular No. 17; Date: 24 March 2020 
• BRPD Circular No. 08; Date: 12 April 2020  • FE Circular No. 18; Date: 26 April 2020 
• BRPD Circular No. 09; Date: 13 April 2020  • FE Circular Letter No. 10; Date: 29 March 2020 
• BRPD Circular No. 10; Date: 23 April 2020  • FE Circular No. 18, Date: April 07, 2020 
• BRPD Circular No. 11; Date: 04 April 2020  • FE Circular Letter No. 11; Date: 12 April 2020
• BRPD Circular No. 12; Date: 4 April 2020  • FE Circular Letter No. 19; Date: 03 May, 2020
• BRPD Circular No. 16; Date: 11 April 2020  MPD
• BRPD Circular No. 19; Date: 15 April 2020  • MPD Circular No.-01; Date: March 23, 2020 
• BRPD Circular No. 20; Date: 15 April 2020 • MPD Circular No.-03; Date: April 09, 2020 

• BRPD Circular Letter No. 11; Date: 3 May 2020  • MPD Circular No.-02; Date: March 23, 2020 

• BRPD Circular Letter No. 23; Date: 4 May 2020 • MPD Circular No.-04; Date: April 09, 2020 

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REFERENCES (CONTD.)
ACD SMEPD
• ACD Circular No. 01; Date: 13 April 2020  • SMESPD Circular No. 01; Date: 13 April 2020 
• ACD Circular No. 02; Date: 27 April 2020  • SMESPD Circular No. 02; Date: 26 April 2020

 DOS OTHERS
• Bangladesh: Update on tax relief (COVID-19)
• DOS Circular No. 02; Date: 12 April 2020 
• SEC/SRMIC/04-231/932; Date: 24 March 2020 
• DOS Circular N0. 06; Date: 24 March 2020
• SFD Circular No. 02; Date: 19 April 2020 
• DOS Circular N0. 07; Date: 25 March 2020 
• DFIM Circular No. 01; Date: 24 March 2020  
• DOS Circular N0. 08; Date: 02 April 2020 
• Memo No. 07.101.020.03.01.001.2020 – 726 ; Date: 31 Mar
• DOS Circular N0. 09; Date: 05 April 2020  ch 2020
• DOS Circular N0. 10; Date: 07 April 2020   

• DOS Circular N0. 11; Date: 09 April 2020  • SRO No. 92/AIN/2020/69/Customs; Date: 22 March 2020 

• DOS Circular No. 12; Date: 12 April 2020 • DMD Circular No. 01/2020; Date: 22 March 2020 

• DOS Circular N0. 13; Date: 16 April 2020 • FID Circular No. 01/2020; Date: 20 April 2020  

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Specialties :
1. Arrangement of UPAS LC Finance
2. Arrangement of Re-finance of UPAS LC
3. Low Cost Foreign Fund (Project & Long Term)
4. ECA Fund Arrangement
JOY DUTTA (REETESH), FCA, FCMA
5. Equity Fund/ Finance Arrangement
JD & CO, CHARTERED ACCOUNTANT 6. Feasibility Study & Project Profile
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SWEET HOME (2ND FLOOR), 8. Corporate & Management Audit
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DHAKA 1212. 10. Income-Tax & VAT related works
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