Like every year, this year’s budget also has it’s share of encouraging and somewhat constraint policy changes for individuals, industries and economy as a whole. Several incentives are discerned in the budget to safeguard and boost local industries. Rice millers welcomed the reinstating of 28% duty on rice import. The increase in corporate tax for the RMG sector may erode the competitiveness of the largest export item of Bangladesh, since the cost of production is prone to increase. However, the recent decision of Government to cut down tax-at source to 0.7% from existing 1%, will bring the RMG makers some relief. Cut in the supplementary duty for hybrid cars (1600-1800 cc) in a bid to promote fuel efficient and environment friendly automotive industry, is also an appreciated green move. The slash in corporate tax by 2.5% for listed banks will definitely have a positive impact on the bottom line of bank’s profitability. Lastly, the 5% VAT imposed on the app-based ride-sharing services, which is a much necessary transportation mode now-a-days, may have a trickle-down effect on the consumers to some extent.
More Print Editions Subscribe