The high interest rate remains in the banking sector due to the default loan, says Toufic Ahmad Choudhury, former director general of Bangladesh Institute of Bank Management (BIBM).
Parliament passes the Tk 5,23,190 crore national budget for 2019-20 fiscal themed as “Bangladesh on a Pathway to Prosperity: Time is Ours, Time for Bangladesh.”
The parliament passes the Finance Bill 2019 with some changes in value-added tax (VAT) and in the policy of capital market and handloom industry.
Prime Minister Sheikh Hasina describes the proposed budget for FY 2019-20 as people-friendly, development-oriented and balanced one, saying that everyone will be benefitted by the budget as it will help continue the pace of ongoing development.
Lawmakers from treasury and opposition benches lambaste Finance Minister AHM Mustafa Kamal for keeping insufficient allocation for education, health and culture sectors in the proposed budget for 2019-20 fiscal year.
Senior Awami League leader Matia Chowdhury lambastes Finance Minister AHM Mustafa Kamal for increasing tax on family savings certificate from five per cent to 10 per cent in the proposed budget for 2019-20 fiscal.
The National Board of Revenue expects to collect about Tk 11,000 crore more for imposition of VAT on various goods and services and increasing rates on many others, said its officials.
The continuation of concessionary duties on raw material import for motorcycle manufacturers into fiscal 2019-20 would help the fast-growing sector, said market players.
Many importers are not receiving delivery of their goods after five per cent of advance tax (AT) was imposed on almost all kinds of imported goods including raw materials and machinery under the new VAT law.
Tax and fiscal policies framed and applied by the government are not progressive enough to reduce inequality in the society, said analysts.
Mobile phone users might have to spend more as the National Board of Revenue is expected to seek a hike in the supplementary duty (SD) on calls, data and other services in the coming fiscal year, said officials.
Former finance minister AMA Muhith has said his successor faces three major challenges: increasing the size of the national budget, realising more revenue and improving the banking sector.
In a break from the past, Finance Minister AHM Mustafa Kamal will set a more realistic revenue income target in his maiden budget, but may shy away from undertaking some much-needed economic reforms.
The government may bump up bank borrowing by as much as 77.32 percent to Tk 54,800 crore for financing the budget deficit in fiscal 2019-20 as it looks to reduce overdependence on saving instruments.
Finance Minister AHM Mustafa Kamal has said the next budget for the fiscal 2019-20 would be more people-friendly through ensuring smooth implementation of the development projects.
