An incentive at the rate of two per cent on the money remitted by expatriate Bangladeshis will be provided from the next financial year.
Finance minister AHM Mustafa made the proposal while placing the national budget for 2019-20 fiscal year in parliament on Thursday afternoon.
He said the initiative has been taken to mitigate the burden of increased expenses in sending foreign remittances and to encourage bringing in foreign remittance through legal channels.
“I have proposed to allocate Tk 30.60 billion in the next budget. This will significantly increase the remittance flow through legal channels and discourage the ‘hundi’ business,” the finance minister told the parliament.
Mustafa Kamal said the expatriate Bangladeshi workers and their families often face financial losses and risks due to accidents and various other causes as there are no insurance facilities available to them.
Preparations have been taken to bring the expatriate workers under the insurance scheme, which will be implemented shortly, he added.