Finance Minister Presents the National Budget for the FY 2022-23 Today

Finance Minister Presents the National Budget for the FY 2022-23 Today

Finance Minister, AHM Mustafa Kamal is present at the Jatiya Sangsad with the national budget of Tk 6.80 trillion for FY 2022-2023, despite the challenges like volatile global economy and inflation. This is the fourth time AHM Mustafa Kamal is presenting the budget. 

The annual budget for FY 2022-2023 is the country’s 51st budget and the 23rd under the Awami Leagues’ five-term administrations. The budget will be 15% of the country’s total gross domestic product (GDP) for the coming year. It includes special tax breaks for agricultural, food processing, and small-business growth. The GDP growth target is expected to have an increment rate of 7.5 percent, with inflation set at 5.5 percent. Moreover, the experts have advised focusing on the need to manage inflation and regulate the country’s foreign currency rate and initiatives to ensure food security ahead of the budget session. As per the FY 2022-2023 budget, taxation on a few products and services will change, For example, cigarettes, cars, fridges, and mobile phones will become costlier due to increased tax, and the government has suggested a 5% tax for the restaurant industry. 

According to the proposed budget, the corporate tax rate has been reduced to 20% from 22.5% for listed companies, 27.5% from 30% for non-listed companies, and 22.5% from 25% for one-person companies. Furthermore, the government has decided to give tax exemption on foreign currency income by Bangladeshi flagged oceangoing ships from the upcoming fiscal year in a bid to earn $3 billion to $4 billion a year. Currently, these local ships have to pay a 10% tax on their incomes.  For the export-oriented RMG industry, the current tax rate is 12 % for ordinary companies and 10% for green industries. Also, imported laptops and air-conditioned (AC) services will be subject to a 15% value-added tax. On top of that, anyone with a bank balance over Tk5 crore will have to pay 25 % more excise duty.

Moreover, the allocation of funding for different sectors has been announced in the new budget. The Govt proposed a budget of Tk81,449 crore for the education sector and Tk36,863 crore for the health sector. The tax on Items like shaving, beautification, toiletries, disinfectant, and depilatory has increased by 10%. 

Subsidies for fuel, natural gas, and fertilizer are expected to rise from Tk15,920 crore to Tk82,745 crore, accounting for 1.9 percent of the country’s GDP. However, govt is committed not to increasing these prices at the consumer level. On the other hand, Tk5,000 crore will be cut down from the Covid-19 fund. 

The Govt has considered the top five priorities while preparing the budget. The first and most important objective is to control inflation caused by the COVID-19 epidemic and the Russia-Ukraine confrontation. The second is the Agriculture sector and the third is s human resource development. The fourth aim is to raise domestic investment, improve, and diversify exports. Last but not the least, is job creation and rural development.

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