Parliament on Wednesday passed finance bill with changes to tax on export and mobile-phone bills that the Prime Minister wanted among other things.
The Finance Minister, AMA Muhith, piloted the bill for the next fiscal, effective from July 1, and it was passed in voice vote.
As many as 213 MPs reviewed the budget for the next fiscal for over 48 hours.
The ceiling on taxable minimum income has been raised to Tk 0.2 million from Tk 0.18 million.
The minimum tax of Tk 3,000 was endorsed by the MPs, barring those from the boycotting opposition, while the Minister withdrew his proposal to impose tax at source on mobile phone bill.
Tax at source on export earning has been reduced to 0.8 percent from proposed 1.2 percent while those who have Tk 0.1 million bank savings do not need any tax identification number (TIN).
Even though the proposed tax hikes at source on exportables did not go through, apparel sector will still have to pay 0.10 percent more in tax at source while the other sectors will have a raise of 0.20 percent.
The garment sector is now paying 0.7 percent tax while 0.6 percent tax is deducted at source from the other export products.
Ten percent tax on profit on life insurance scheme and five percent regulatory duty on CR coil have been withdrawn while aluminium will continue to enjoy tax waiver.
Small businesses with Tk 7 million turnover will continue to enjoy the traditional VAT package system while those beyond the limit would be brought under new VAT collection system.
Small and cottage industries with less than Tk 4 million turnover will get income tax waiver while there would be no duty on importing computer monitor up to 22 inches.
Muhith said undisclosed money can be invested in several sectors in the economy as the government would emphasise more revenue collection.
The revenue target is about Tk 1.17 trillion while the non-tax revenue target is Tk 228.46 billion for the next fiscal.
Muhith admitted that the economy faced a stiff challenge in the first six of the outgoing fiscal but it turned around in the second half.
"We had to resort to excess bank borrowing as we failed to adjust fuel price in due time," he said.
Fluctuation in foreign trade and commodity prices in the international market twined with political stability are the major risks for the economy in the next fiscal, Muhith felt.
"The country is under huge risks as Bangladesh is a low income country with 45 million poor and 70 percent of the economy is exposed to external sector," he said.
Hoping to achieve 7.2 per cent growth in the next fiscal, he said the implementation capacity has increased manifold.
Bangladesh needed soft loan from foreign source and if the aid could be utilised, it would reduce pressure on the economy.
About capital market, Muhith said reforms would bring results by December.
The Finance Minister, AMA Muhith, piloted the bill for the next fiscal, effective from July 1, and it was passed in voice vote.
As many as 213 MPs reviewed the budget for the next fiscal for over 48 hours.
The ceiling on taxable minimum income has been raised to Tk 0.2 million from Tk 0.18 million.
The minimum tax of Tk 3,000 was endorsed by the MPs, barring those from the boycotting opposition, while the Minister withdrew his proposal to impose tax at source on mobile phone bill.
Tax at source on export earning has been reduced to 0.8 percent from proposed 1.2 percent while those who have Tk 0.1 million bank savings do not need any tax identification number (TIN).
Even though the proposed tax hikes at source on exportables did not go through, apparel sector will still have to pay 0.10 percent more in tax at source while the other sectors will have a raise of 0.20 percent.
The garment sector is now paying 0.7 percent tax while 0.6 percent tax is deducted at source from the other export products.
Ten percent tax on profit on life insurance scheme and five percent regulatory duty on CR coil have been withdrawn while aluminium will continue to enjoy tax waiver.
Small businesses with Tk 7 million turnover will continue to enjoy the traditional VAT package system while those beyond the limit would be brought under new VAT collection system.
Small and cottage industries with less than Tk 4 million turnover will get income tax waiver while there would be no duty on importing computer monitor up to 22 inches.
Muhith said undisclosed money can be invested in several sectors in the economy as the government would emphasise more revenue collection.
The revenue target is about Tk 1.17 trillion while the non-tax revenue target is Tk 228.46 billion for the next fiscal.
Muhith admitted that the economy faced a stiff challenge in the first six of the outgoing fiscal but it turned around in the second half.
"We had to resort to excess bank borrowing as we failed to adjust fuel price in due time," he said.
Fluctuation in foreign trade and commodity prices in the international market twined with political stability are the major risks for the economy in the next fiscal, Muhith felt.
"The country is under huge risks as Bangladesh is a low income country with 45 million poor and 70 percent of the economy is exposed to external sector," he said.
Hoping to achieve 7.2 per cent growth in the next fiscal, he said the implementation capacity has increased manifold.
Bangladesh needed soft loan from foreign source and if the aid could be utilised, it would reduce pressure on the economy.
About capital market, Muhith said reforms would bring results by December.
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