News desk: From now on, various businesses will be able to send a minimum of one lakh dollars abroad without the approval of Bangladesh Bank.

The Foreign Exchange Policy Department of Bangladesh Bank issued a notification in this regard on Monday.

The circular sets a limit of one million dollars with 1 percent of last year’s sales. Whichever is more, the amount can be sent abroad for necessary expenses.

Earlier, a notification was issued in November to increase the remittance to 1 per cent of last year’s sales declared in the income tax return.

The central bank allowed remittances for other reasonable expenses, not just training and consultation fees.
According to the directive, audit fee, certification fee, commissioning fee, testing fee, evaluation fee can be sent abroad.

Institutions operating in the economic zone of Bangladesh that sell products in the local market in local currency will be able to send 1 percent of the proceeds abroad, the circular said.

However, the expenditure which requires the approval of the concerned authorities for remittance abroad will not be covered by the notification.

The directive also said that approval of Bangladesh Investment Development Authority (BIDA) would be required for sending royalty, technical knowledge or assistance fee and franchise fee.

It is learned that Bangladesh Bank has taken this decision in view of the demand of foreign institutions.