BB simplifies export promotion procedures for freelancers

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Bangladesh Bank (BB) has simplified the process of cash incentives for freelancers working with software and IT-related services in various international marketplaces for global clients against their foreign exchange earnings of up to US$5,000.

The central bank’s foreign exchange policy department issued a related circular on Sunday, removing the existing requirement to receive “remittance telegraphic messages” from customers (importers) mentioning the details of the trade for the stimulus stimulus.

“Because the freelance jobs have no formal agreement, it is very difficult for freelancers to meet all existing requirements to claim the government incentive, which is why we have simplified the process,” said a senior BB official who was unwilling is to be so called was not authorized to speak to the media.

The official familiar with the matter told The Business Standard that the much-requested step has been taken in line with the advice of the ministry concerned.

He hoped more freelancers would get the incentive.

The government has been offering freelancers a 4% cash incentive on their earnings from service exports since last September (2021) to patronize online workers and attract more youth into the sector.

According to the latest circular, which went into effect on Sunday, the government will grant the stimulus from now on after verifying freelancers’ claimed earnings. In the past, many documents were required.

However, the marketplace where freelancers earn foreign exchange should have been recognized by the Information and Communications Technology department.

To claim the incentive, the freelancers must provide proof of earnings, web links and other audit trails for verification.

The central bank labeled the freelancers’ exporting products as “software and information technology-enabled services,” which include digital content development and management, animation (both 2D and 3D), geographic information services, IT support and software maintenance services, website services, business process outsourcing , data entry, data processing, call center, graphic design (digital services), search engine optimization, web listing, e-commerce and online shopping, document conversion, imaging and archiving, software or application customization, website development, website hosting, digital data analysis, software testing laboratory services, medical transcription abroad, robotics process outsourcing and cybersecurity services.

Freelancers say that exporting services is more important because, unlike exporting goods, there is no need to import raw materials.

The country now receives nearly US$300 million through bank channels with the ICT services exports.

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