• Tuesday, Jun 25, 2019
  • Last Update : 03:40 am

Budget 2019-20: Tax holiday may extend for five years, safety program to see trimmed allocation

  • Published at 01:52 am June 12th, 2019
Budget-Bigstock
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Currently, 18 sectors enjoy the tax holiday facility, meaning income generating from the businesses are tax-free

The upcoming budget is likely to expand and extend the areas for tax holiday facility, and coverage of social safety net program.

However, shares of budget allocation and Gross Domestic Product (GDP) against the social safety net program are likely to be trimmed down in the upcoming budget compared to the current ones.

As the tenure of the current tax holiday expires on June 30 this year, the budget for the upcoming 2019-2020 fiscal year is likely to extend its timeframe until June, 2024.

Currently, 18 sectors enjoy the tax holiday facility, meaning income generating from the businesses are tax-free. The government time and again offers the facility to attract investment and spur industrialisation.

Besides the holiday facility, a good number of industries in the country enjoy tax-depreciation facility that guarantees lower corporation tax.

In the budget, a number of new industries like furniture, agriculture machinery, leather and household electrical items manufacturers are likely to be offered the tax holiday facility, it was learnt.

Industries to be set up in the Economic Zones will be eligible for a 10-year tax holiday. Under this category, first two years will be considered for 100% tax immunity, while the other eight years for partial tax-holiday facility in the proposed budget.

Currently, 16 sectors are included under the social safety net program. The allocation for the head in the current fiscal year is Tk 32,422 crore, which is likely to be increased to Tk 37,500 crore in the upcoming budget.

Allocation made for the social safety net program is 13% of the current budget size, and 2.53% of GDP.

However, the allocation for the same head in the upcoming budget and GDP is likely to be 12% and 2.40% respectively.

The allowance for freedom fighters is likely to be increased to Tk12,000 crore in the budget. The number of old-age allowance beneficiaries is going to be increased to 44 lakh, from the current 40 lakh, number of widow allowance beneficiaries is going to be increased from 14 lakh to 17 lakh and insolvent physically challenged from current 10 lakh to 15.45 lakh in the draft budget.

The upcoming budget is likely to increase stipends for primary, secondary and higher secondary level by Tk 50. The number of eligible students for stipend is going to be one lakh from the current 90,000.

The number of Bede and under-privileged beneficiaries will be increased from current 64,000 to 84,000, number of cancer, kidney, liver cirrhosis, paralysed and heart patients beneficiaries will be increased from 15,000 to 20,000, beneficiaries of tea-garden workers will be increased from 40,000 to 50,000, maternity women’s allowance beneficiaries to be increased from 7 lakh to 7.70 lakh  and number of working lactating mother allowance beneficiaries will be increased from 2.50 lakh to 2.75 lakh.