Bangladesh has exempted local software houses from the requirement to finance export sales with letters of credit (L/Cs). As part of an aggressive campaign to earn about US$100 million in 2000 through software exports, the government has offered companies in the IT sector a five-year tax holiday and allowed exports of software on open account. An exporter can also retain 40 percent of his export income in foreign exchange. In 1998 the government offered the IT sector several incentives, including duty-free imports of computers.

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