Bangladesh is losing out on potentially billions in foreign exchange earnings as a significant portion of the country’s freelance workforce avoids repatriating their full income due to a raft of financial disincentives, insiders say.

An investigation by The Financial Express reveals that most active freelancers, who typically earn over $800 per month, keep 50–70% of their earnings abroad to dodge lower exchange rates, VAT, and source tax on international promotional expenses.

As a result, only 30–50% of their income enters the country, depriving the forex-starved economy of critical dollar inflows.

Freelancers cite unequal treatment as a key issue. “We get less than Tk 120 per dollar, while expatriate workers receive around Tk 125 plus a 2.5% incentive,” says Minhazul Asif, founder of CodemanBD. Added to this are steep VAT and tax burdens—up to 40%—on foreign service payments.

The Bangladesh Freelancing Development Society (BFDS) estimates that around 1.05 million freelancers exist in the country, with 250,000 actively earning. According to Payoneer data, freelancers generate $1 billion annually—a figure experts say could triple with proper policy support.

BFDS Chair Dr Tanjiba Rahman urges policymakers to create a friendlier digital ecosystem, including tax cuts and equal incentives. BRAC Bank, which serves freelancers through a special account system, says it has processed $14 million in the past year from 2,300 clients—just a fraction of the sector’s potential.

A Bangladesh Bank official admitted the inflow remains “insignificant” and called for urgent policy reforms.