A quick access to all the stories on the proposed national budget for 2020-21 fiscal year
Finance Minister AHM Mustafa Kamal has tabled a national budget of Tk568,000 crore for the FY2020-21, the biggest in Bangladesh's history.
In his 52-minute digitally presented budget on Thursday, Finance Minister AHM Mustafa Kamal made strenuous efforts to please all sections of the country’s population.
Amid uncertainty and bleak future of a global economic recovery, Bangladesh government has set a target of 8.2% gross domestic product (GDP) growth for FY20-21.
Finance Minister AHM Mustafa Kamal has announced a total of Tk29,247 crore for overhaul of the health sector, which has been battered by the Covid-19 pandemic, in the budget for the 2020-21 fiscal year.
Amid the coronavirus crisis, the government has taken up a comprehensive plan with four main strategies discouraging luxury expenditures and prioritizing government spending that creates jobs.
The government has proposed to hike excise duty on bank accounts with significant balances in an attempt to increase revenue collection for the next fiscal year, as well as pave the way for recovery of economy battered by the Covid-19 pandemic.
Agriculture second highest priority in budget, says finance minister.
Finance Minister AHM Mustafa Kamal has proposed to raise the ceiling for tax-free income threshold to Tk3 lakh from the existing ceiling of Tk2.5lakh - the first time in five years.
Of the amount, the NBR has been tasked to realize a revenue collection target of Tk330,000 crore.
Including the operational cost – Tk10,342 crore – the sector has been tipped to be allocated Tk64,580 crore.
Mobile phone use is likely to become costlier in the 2020-21 fiscal year, as the government has proposed a 5% hike in the supplementary duty (SD) on mobile phone services - voice and data – in the proposed budget.
Telecom carrier Robi Axiata has said the government’s move to increase supplementary duty by 5% points on all telecom-related services is “highly regrettable”.
Finance Minister Kamal proposed increasing supplementary duty in a bid to reduce the consumption of tobacco products and maximize revenue collection from this sector.
The finance minister reiterated that Bangladesh would maintain this gesture of humanitarian response in the coming fiscal year too.
Over 10.2 million Bangladeshi migrant workers work in 174 countries across the world.
The government has proposed a budget of Tk66,401 crore for the education sector in the next fiscal year, up from a budget of Tk61,114 crore in the outgoing 2019-20 fiscal year.
The government has proposed an allocation of Tk95,574 crore for the social safety net programs for the 2020-21 fiscal year in its fight against poverty and coronavirus-related issues.
More than one-third of the total health budget will be allocated for paying wages while paying for infrastructure and machinery or equipment will also make a huge dent in it.
The government has cut allocation in the mega projects at a time when those are already supposed to miss the deadline due to the Covid-19 pandemic.
In a bid to fulfil emergency requirements over the Covid-19 pandemic, Finance Minister AHM Mustafa Kamal proposed a lump sum allocation of Tk10,000 crore in budget for FY2020-21.
Three banks and one specialized institution will distribute the money, says the finance minister.
The ruling party leaders also thanked and expressed their gratitude towards the party chief, Prime Minister Sheikh Hasina, for delivering such a challenging budget amid the global coronavirus pandemic.
The export-oriented industry people thanked the government for waiving taxes.
DCCI President Shams Mahmud said: “It will be a big challenge to implement this huge budget since it is a huge expenditure budget which aims to increase investment, provide stimulus to entrepreneurs and ensure a social safety net. It needs to reconsider the revenue collection target."
The revenue collection target for the coming fiscal year is Tk378,000 crore.
Mahmudur Rahman Manna, convener of Nagorik Oikya, said there is no real directions for economic recovery and future instruction in the proposed budget.
The Consumer Association of Bangladesh (CAB) has commended as well as made some critical observations about the proposed national budget for the 2020-21 financial year.
The government has forecast that the overall FY2020-21 budget deficit will be Tk190,000 crore, which is 6% of the GDP.
Finance Minister AHM Mustafa Kamal has proposed changes to duties on different products, which will result in increase or decrease in their prices.
The government has proposed to withdraw Value Added Tax (VAT) on import of gold to boost up the gold importation through the legal routes.
The power and energy sector of Bangladesh is set to receive an allocation of Tk26,758 crore in the proposed national budget for the 2020-21 fiscal year.
Currently, investors pay 5% tax on the interest or coupon they will get till the maturity of any bond upfront when purchasing bonds.
The government aims to keep inflation limited to 5.4% in the coming 2020-21 financial year, amid a global economy that is badly shaken because of the Covid-19 pandemic.
Untaxed money can be kept in banks by paying only 10% tax.
A fellow of the think tank said the government will not be able to benefit much from this facility.
BNP Standing Committee member Amir Khasru Mahmud Chowdhury has expressed concern over the proposed FY2020-21 national budget, stating that it is a process of whitening black money and keeping corruption going.
The government is planning to amend the Companies Act to this end, Finance Minister Kamal said in parliament.
The allocation in the proposed budget is Tk271 crore more than the revised budget of 2019-20 fiscal year that was Tk3,417 crore.
The government is giving the highest priority to the digitalization of the National Board of Revenue (NBR), Finance Minister AHM Mustafa Kamal has said.
The government has proposed to keep the income tax rate for company taxpayers unchanged for the FY2020-21, except for non-listed companies.
Tax at source for Bangladesh’s apparel sector, the $34 billion industry, increased to 0.5% from 0.25% for FY2020-21.
Finance Minister AHM Mustafa Kamal, in his budget proposal for FY2020-21 on Thursday, said he planned to spend Tk63,801 crore in interest payments, which stands at 11.23% of the total budget.
The $34 billion apparel sector of Bangladesh will continue to enjoy reduced corporate tax rate at 12% for the 2020-21 fiscal year, in a bid to help fight the Covid-19 impact.
Additional 1% cash incentives against exports of apparel goods with the existing incentives will continue for the incoming fiscal year.
The owners of private cars and jeeps will have to pay more for obtaining different services provided by Bangladesh Road Transport Authority (BRTA).
The travel by air conditioned launch services will get costlier as the government has proposed to double the value added tax on the service.
This year’s proposed allocation is Tk36 crore lower than that of the outgoing year.
Finance Minister Kamal has proposed raising the excise duties on bank accounts that hold over Tk10 lakh.
The growing popularity of chartered aircraft and helicopter flights might suffer a hit as the government has proposed a hike in the supplementary duty on the service by 5%.
The government has fixed a higher borrowing target from banks for the fiscal year 2020-21, in order to finance the projected budget deficit.
Finance Minister Kamal proposed to exempt Value Added Tax (VAT) on coronavirus test kits to support detection and prevention of Covid-19.
The government has proposed to impose a fresh 50% tax to check trade-based money laundering and tax evasion through fake and inflated investment.
The allocation in the proposed budget is only Tk36 crore more than the revised budget of 2019-20 fiscal year.
In the previous fiscal year, Tk1,196 crore was allocated for the law and justice sector and Tk195 crore for the Supreme Court.
This means the tax will be imposed on any advertisement put on social media, such as Facebook and Youtube or search engines like Google.
The government has to spend Tk63,801 crore in interest payments, which is 11.23% of the proposed national budget for the 2020-21 fiscal year.
Finance Minister AHM Mustafa Kamal has said an e-judiciary project has been taken to bring the subordinate courts in Bangladesh under the ICT (information and communication technology) network.
Kamal said the government is playing an important role in the development of sports and culture for the youth of Bangladesh
The chunk of defence budget for the FY2020-21 has been increased by Tk2,327 crore than that of the outgoing fiscal year.
The supplementary duty on local cosmetics will be increased to 10% from 5%.
Finance Minister Kamal has proposed to raise the advance income tax (AIT) for private cars and sport utility vehicles (SUVs) for the incoming FY2020-21.
Allocation of Tk100 crore has been proposed for the development of health services through integrated medical research.
The new allocation is nearly Tk3,000 crore more than that in the outgoing fiscal year.