Finance Minister AHM Mustafa Kamal has proposed a national budget of Taka 5.68 trillion (5,68,000 crore) for the upcoming 2020-21 fiscal to achieve full economic recovery amid coronavirus pandemic.
“This budget, formulated at the directives of Hon’ble Prime Minister, will be our tool as we move towards overcoming economic recession and establishing the foundation for desired economic success in the future in continuation of past development” he said while announcing the budget in parliament on Thursday (11 June 2020).
“InshaAllah. We shall have to overcome the situation with patience and bravery without being distracted and panicked at this critical moment,” the finance minister said, quoting averse from Surah Al Baqarah.
The proposed budget has been cited industry and business friendly which may leave the impacts on the mentioned sectors as below,
1. Apparel Exporting Industry
• CDs on RFID TAG and Industrial Racking System Imported by Industrial IRC Holder VAT Compliant 100% Export Oriented Garments Industry have been reduced to 15% from 25%.
2. Footwear Industry
• CDs on Textile Fabrics Laminated with Polyvinyl Chloride, Textile Fabrics Laminated with Polyurethane (Artificial Leather) have been reduced to 15% from 25%, SD on Printed Knitted or Crocheted Fabrics Imported by Industrial IRC Holder VAT Compliant Footwear Manufacturing Industry reduced to 0% from 20%.
3. Petroleum Processing and Blending Industry
• Customs duty on Base oil imported in bulk by Industrial IRC holder VAT compliant petroleum products processing or blending industry has been reduced to 10% to 5%.
4. Agriculture Sector
• VAT on Tyre used on agricultural tractors, Inner tubes or rubber used on tractors, Rubber bearing, Other agricultural, horticultural, forestry, poultrykeeping or bee-keeping machinery, including germination plant fitted with mechanical or thermal equipment, poultry incubator and brooders, have been nullified at import stage.
• Reduction of Customs duty on ten agricultural machinery products has been stated in the budget proposal.
• CDs on Hand-operated sprayers for agricultural use, and Other agricultural or horticultural Sprayers have been reduced to 1% from 10%.
• RD on Soyabean oil cake, and CD on Soya Protein Concentrate have been decreased to 0%.
• SD on Fresh or chilled Cuts and offal of fowls Wrapped/ canned upto 2.5 kg; Fresh or chilled Cuts and offal, fresh or chilled, in bulk; Frozen Cuts and offal of fowls Wrapped/canned upto 2.5 kg; and Frozen Cuts and offal of fowls in bulk have been raised from 0% to 20% with a view to protecting the domestic industry.
• Customs duties (CDs) on Onions Wrapped/canned upto 2.5 kg; Onions in bulk; have been increased to 5% from 0%, and Disodium sulphate to 15% from 5% to protect domestic industry.
5. Compressor Industry
• CD on Lubricating/cutting oil /anti-rust preparations, containing petroleum or bituminous mineral oils, and Artificial Graphite have been reduced from 10% to 1%.
6. Paper Manufacturing Industry
• Customs duty on Cleaning preparation imported by industrial IRC holder VAT compliant paper mills has been decreased from 25% to 15% for protecting domestic industry.
7. Printing and Packaging Industry
• Customs duty on Photosensitive plates imported by industrial IRC holder VAT compliant Printing and packaging industry has been decreased from 25% to 15% for protecting domestic industry.