Bangladesh budget sets higher GDP for FY20

AHM Mustafa Kamal, Bangladesh Finance Minister, in his budget speech in Parliament on 13 June  proposed that country's GDP grew consistently at a very high rate in the last decade. He added, "We expect a GDP growth of 8.13 per cent in FY218-19. Our commitments are to achieve a growth rate of 10 per cent by FY23-24, and maintain that rate until 2041 so that we can lay a solid foundation for becoming a high income country by that time."

To achieve this objective, minister said that GDP growth rate has been projected at 8.2 per cent for FY19-20. The inflation rate during this year is forecasted at 5.5 per cent. Alongside, this goal will be to enhance the competitiveness of all business sectors, including agriculture, industry, commerce, exports, real estate and services sectors.

No direct measures for cement industry were announced but the government presented a big list of projects for implementation during the next fiscal, which would definitely create demands for cement, it is hopped.

Facilitating business and growth
The income generated through production of goods and services in Economic Zones and High-Tech Parks has been given tax exemption facilities at different rates for 10 years. With a view to driving up more investment and create more employment, minster proposes a new provision in the income tax law, to accept investment in Economic Zone and High-Tech Parks, without any question on the sources of invested fund, by the income tax department, if the taxpayer pays 10 per cent income tax on such invested amount.

Under the existing law, 21 industrial sectors and 19 physical infrastructure development sectors have been enjoying tax holidays on the basis of geographical locations at different rates for different periods of time. This benefit will expire on 30 June of this year. With a view to promoting business and investment, augmenting export and creating employments, he proposes the facilities of tax holiday to continue and also to include some potential manufacturing sectors, such as agricultural machinery, furniture, home appliance – rice cooker, blender, washing machine etc, mobile handset, toys, leather and leather goods, LED television and plastic recycling etc.