The Jatiya Sangsad on Tuesday unanimously passed the national budget involving Taka 1,13,819 crore for the 2009- 10 fiscal year with a commitment to implement the initial step of 'Din Badal' (charter for change of days) and Digital Bangladesh.
The budget was adopted with the passage of the Appropriation Bill, 2009 in the House. All lawmakers, present in the House, approved the budget thumping on the table.
The budget, the first since the Awami League-led Mohajote government came to power with an overwhelming victory during the last general elections, was placed in the House by Finance Minister Abul Maal Abdul Muhith on June 11.
Leader of the House and Prime Minister Sheikh Hasina, Finance Minister Abul Maal Abdul Muhith, ministers, treasury bench members and the opposition members, except those of the four- party alliance, took part in the budget discussion on 10 working
days from June 17 to 29.
The new budget was formulated with an objective to attain certain national goals including alleviation of poverty, increasing revenue income and expansion of VAT-net, establish social justice and equity, protect local industry, expand agriculture and rural economy, patronize small and medium industries, raise investment and employment generation and develop human resources.
The new budget projected more than 5.5 percent growth rate in the 2009-10 fiscal year.
The total deficit of the budget for 2009-2010 fiscal will be Taka 34,358 crore, which is 5 percent of the Gross Domestic Product (GDP). Two percent of the deficit will be covered from foreign aid and 3 percent from internal resources.
The total revenue income estimated in the budget is about Taka 79,461 crore which is 11.6 percent of the GDP. Out of the revenue income Taka 61,000 crore was estimated from different sources of the National Board of Revenue (NBR). Taka 15,506 crore and Taka 2,955 crore will come from non-tax sources and non-NRB sources respectively.
The total size of the Annual Development Programme (ADP) of the budget is Taka 30,500 crore which is 4.4 percent of the GDP.
The budget has given priority on massive employment generation, creating scope for self-employment, social safety, balanced development, reducing regional disparity, agriculture development, power generation and create necessary infrastructure to build a digital country.
The budget envisaged 5.5 percent annual growth for 2009-2010 fiscal and 5.9 percent in 2008-2009. Inflation is expected to decline to 6.5 percent.
In the case of individual taxpayers, the budget relaxed the citizens of 65 years old from paying income tax. Earlier the provision was applicable for the citizens above 70 years.
The budget also conditionally allowed for legalizing the undisclosed money of individuals and brought changes in import duty, allocated special funds for climate change and employment of the youths after passing out higher secondary level.
Impact of budget on prices
After the passage of national budget for 2009-10 in the parliament with some changes in the proposed tariff structure, the prices of some items will fall while some others will rise.
Prices to fall
As Finance Minister AMA Muhith announced tax cut on motor vehicles, cellphones, kitchen utensils, medicines and bidi, the prices of these will fall compared to what was anticipated.
Tax on cellphone handsets would be reduced to 12 percent from the proposed 25 percent in the budget. He also proposed waiver of five percent regulatory duty on mobile phone sets. Value Added Tax (VAT) on herbal and unani medicines and manpower recruitment agencies has been withdrawn.
To encourage people to use computers more, investment for purchasing a laptop under Tk 1 lakh and a desktop computer under Tk 50,000 would be tax-free. In the import of computer and its accessories, the duty and advance income tax has been completely withdrawn.
For cars with engines between 1,000cc and 1500cc, 45 percent supplementary duty was proposed but now it has been brought down to 30 percent.
The proposal to increase duty on transports, including motorcycles, used by the masses has been withdrawn.
In the case of individual taxpayers, the budget exempted the citizens of 65 years of age from paying income tax. Earlier the provision was applicable to the citizens above 70 years.
In case of individual category taxpayers, the amount of tax rebate has been increased to Tk 10 lakh from the proposed Tk 5 lakh.
Prices to rise
Hybrid vehicles up to 2,000cc would remain duty free but those above 2,000cc would have to pay tax. Earlier, all hybrid vehicles were proposed to be duty free.
A 12-23 percent tax hike was proposed on cigarettes and five percent tax has been added on top of it.
Higher duty on big and luxury cars has been imposed.
Price of imported newspaper will rise despite reduction of proposed import tariff from five percent to three percent. Tax on cigarettes has been raised and as a result these will rise more.
Source: www.thebangladeshtoday.com
