Finance Minister AHM Mustafa Kamal has announced the largest ever budget for the 2022-2023 fiscal year titled 'Return to the continued development overcoming the impact of Covid'.
In a reaction to the budget, Shippers’ Council of Bangladesh Chairman Md Rezaul Karim said: "We think it is possible to implement this budget even if it is difficult."
Some issues, however, need to be reconsidered and on some issues, a stable policy is needed. He said that the budget was timely considering the post-corona economic recovery in the context of the Russia-Ukraine war, reads a press release.
In the proposed budget for the 2022-2023 fiscal year, tax exemption has been extended till 2030 to encourage the movement of Bangladeshi flag ships. This will encourage new investment in this sector, helping employment growth and export diversification.
In his budget speech, the Finance Minister proposed to make the foreign exchange earnings by Bangladeshi-flag ships through the banking channel tax-free up to 2030. It will enhance the contribution of the services sector.
The chairman of the Shippers’ Council of Bangladesh said that the total expenditure in the budget is Tk678,064 crore, the total income is Tk436,271 crore and the deficit is Tk241,793 crore. The operating cost is Tk411,406 6 crore and the annual development program amounts to Tk246,066 crore. He hoped that the government will be cautious in meeting the deficit.
Deduction at the source of bank interest of the companies has been increased from 10% to 20% and the tax at the source of exported goods has been increased from 0.5% to 1%. This may be reconsidered. The same tax rate for all export-oriented industries as applicable to the readymade garment industry will play an important role in diversifying export products.
The opening of the dream project Padma Bridge financed by own sources at the instance of the prime minister will bring about a revolutionary change in the field of industry as well as in the quality of life of the local people in the southern part of the country.
Like Padma Bridge, other mega projects like Metro Rail, Chittagong Bay Terminal, Karnafuli Tunnel, Rooppur Nuclear Power Station, Mirsarai Bangabandhu Industrial City and Chittagong Cox's Bazar Railways need to be implemented on an urgent basis.
It is, however, necessary to declare freight forwarding as a service industry. Reducing corporate tax rates on shipping agents and providing financial incentives to shipping agents are also necessary, said the chairman of the Shippers’ Council of Bangladesh.
