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Budget Analysis of Bangladesh

In: Business and Management

Submitted By rafsan619
Words 1112
Pages 5
Rafsan Mahtab
ID: 16-087

Here I have included the proposition and analysis of indirect taxes for the budget FY: 2009/10

Proposition

Currently in our country a big portion of tax revenue is earned by import duty which constitutes nearly 42% of the total tax revenue. Because of the ongoing current global recession it is suspected that the revenue from this sector may go down. In this year’s budget a change has brought in the import tariff in certain areas to protect our local industries and retain our export market. Some measures has been proposed which are: 1. A reduction in the in the duty on basic raw materials from 7% to 5% to make our local industry more competitive both in local and international market. 2. Agricultural sector has been declared as the top priority sector and the continuation with the zero tariff on imports of fertilizer, seeds and major food grains. Along with medicine and raw cotton .withdraw VAT on the imports of raw materials to produce pesticides has been proposed to keep pesticides easily available for farmers. 3. Increasing supplementary duty on the imports of luxury vehicles and restructuring of duty slabs has been proposed to augment revenue collection and to discourage imports of luxury vehicles. 4. In order to offer exemption from supplementary duty against import of hybrid motorcars, which is fuel efficient, it is proposed to create a new HS code for separate classification. 5. To enable importation of durable and standard vehicles to be used as taxicab, it has been proposed to attach the conditions of minimum engine capacity of 1500 CC and import of at least 10 vehicles in one consignment by any taxicab company. 6. It has been proposed to impose 25% customs duty on mobile phone sets on an ad valorem basis instead of existing specific duty of Tk. 300/set applied irrespective of quality and…...

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