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Download PDF The national budget for the fiscal year 2007-08 will be announced on June 7 and the budget documents will be made available on the website for incorporating suggestions from people, Finance Adviser AB Mirza Mohammad Azizul Islam said yesterday.
Before declaration through an ordinance, the budget documents will be approved by the advisory council, he told the journalists after inauguration of a two-day long seminar organised by Social Science Research Council at the auditorium of National Economic Council.
Asked about the recent disbursement of $200 million by World Bank, the finance adviser said the money would strengthen the government’s expenditure capacity.
Addressing as chief guest at the inaugural session of the seminar on dissemination of the result of researches, he asked the researchers to conduct life-oriented research and try to find out solution to different national problems.
He said there should not be research only for research’s sake and the research should be society-oriented. The economic adviser also stressed the need for developing specialisation in different sectors for surviving in the present competitive world.
Chaired by Planning Secretary Zafar Ahmed Chowdhury, the inaugural session was also addressed by Chairman of Centre for Development Research Bangladesh Dr Mizanur Rahman Shelly, Abdur Rahim Khan, Dr Mohammad Mahbub Ullah, and Salehuddin Mohammad Musa.
Mizanur Rahman Shelly underscored the need for more social research and said the researcher should try to motivate the bureaucracy for the welfare of the general people.
Abdur Rahim Khan explained the objectives of the seminar and presented synopsis of various findings of the recent research conducted under the Social Science Research Council. The detailed discussion on the findings would be held in the working sessions of the seminar.
June 12th, 2007 at 3:29 pm
The minimum taxable income sould be at least TK. 3,50,000/=
June 12th, 2007 at 3:35 pm
Considering the current price of the essential commodity, the minimum taxable income should be Over TK. 3,00,000/=
June 13th, 2007 at 2:23 pm
tax approvement in IT related commotity is the worst section of budget. Govt tried his best to introduce a symmetrical budget, but approve vat in new 46+ sector will increase price of essential commodity.
June 16th, 2007 at 6:44 pm
June 16, 2007
Honourable Chairman
National Board of Revenue
Sagun Bagicha
Dhaka.
Sub: Budget Review
Dear Sir
We would like draw to your kind attention to the proposed Budget for 2007-2008.
Following are some of the issues in the new budget which will have an adverse impact on the business of the Agro Processing Sector. Our observations are as follows:
1. Item name: Tetra Pak / Ascetic Pak – Previous H. S. Code was 4811.59.10 where the rate of duty was 5%. As per the present declared budget description of goods changed to Ascetic Pak and as a result, the H. S. Code changed to 3923.90.50 where the rate of duty is 15%. As per the present declared budget all of 5% duty changed to 10%. But in this case, duty increased to 15% instead of 10%. As a result net impact would be 7.5% higher than existing.
Tetra Pak / Ascetic Pak are the basic packing material for Agro based food manufacturing industries. This packing material is basically used for packing liquid milk which is most essential for the children. Also packing of juice from fresh Mango, Pineapple etc. which are 100% Local Agricultural product and brought locally from the rural areas.
We strongly urge you to reconsider the rate of duty from 15% to 10% as it is for 100% industrial use. Moreover always Tetra Pak / Ascetic Pak are imported in printed form and as result no one can use except for industrial purpose.
2. Item name: Snacks products under H. S. Code 1704.10.00, 1704.90.00, 1905.32.00, 1905.90.00, 2007.99.00, 1902.19.00 etc. previous duty was 25% + 65% (SD) + 15% + 3% + 4% + 1%. But present proposed duty is 25% + 60% (SD) + 15% + 3% + 1%. As a result the new policy on duty and taxes on imported finished products will be 11.19% less than existing duty and taxes. This will discourage the growth of local industry and also make them less competitive.
Our request is to increase supplementary duty from proposed 60% to 100%. So that local industry will be encouraged to expand manufacturing so that the economy as a whole would benefit.
3. Item name: Cellular made from other Plastic, Vulcanized, Metalised or similar plastics (printed form), H. S. Code # 3921.90.91. A lot of materials are imported in printed form and used in food industry as basic packing material. Previous duty was 25% + 15% (SD) + 15% + 3% + 4% + 1%. But present proposed duty is 25% + 60% (SD) + 15% + 3% + 1% i.e. net impact on this industrial packing material is 60.69% higher than existing. But our main aim should be to expand the Agro Processing Sector to minimize to the use foreign products for the expansion of the export market.
Our submission is to fully withdraw Supplementary Duty (60%) on the above mentioned item (printed form) i.e. SD from 60% to 0% to encourage the local food industry to grow so that export is encouraged.
4. Item name: Capital Machinery – Previous duty was only 5% (under SRO benefit). Present proposed duty is 10%. This will increase the project cost and as a result investors will be shy away from new investment in the light of the above.
5. Income Tax:
(a). Tax Exemption/Holiday for Milk Products:
Fact:
Dairy Farms are enjoying Tax Exemption as per SRO#206/Ain/IT/2005 dated 06th July 2005. On the other hand Liquid Milk Processing Industry/Powder Milk manufacturing industry are neither enjoying Tax Exemption nor enjoying Tax Holiday. On the other hand Milk Vita is enjoying Tax Exemption under U/S 47 of Income Tax ordinance & order # 72 & 73 dated 29.05.01 of the Honorable High Court Division.
Proposal:
Liquid Milk Processing industry/powder milk manufacturing industry be included under Tax Holiday/exempted list for equal plain field competition.
(b) Value Added Tax Supplementary Duty:
Withdrawal of VAT on Milk Products:
Fact:
VAT is levied on milk products like flavored milk, powder milk, condensed milk, milk candy, yogurt etc. while white milk, butter & ghee are VAT free.
Proposal:
To encourage milk production & consumption of milk and milk products by the population, especially children, these should be declared VAT free.
(c) Exemption of VAT on PVC Pipes used for Tube Well/Irrigation Pump:
Fact:
Presently Hand Tube well/Irrigation pumps are VAT exempted at production level. On the other hand the major parts for installing tube well & irrigation pump i.e. PVC pipes, filters, Hose Pipe, Coil Pipes ate VAT able items.
Proposal:
To facilitate the farmers use of PVC Pipes, filters, Hose Pipe, Coil Pipes etc. should be VAT exempted like Hand Tube Well, Irrigation Pump etc.
(d) Reduction Supplementary Duty on Milk Powder at Production Stage:
Fat:
Presently there is no supplementary duty on powder milk at import stage. However, supplementary duty is levied at production stage (2.5%) if it is sold below 2.5kg packets.
Proposal:
To break the anomalies supplementary duty from production stages should be withdrawn for any sort of packaging.
a. The amount of prepayment for filing appeal should be 5% & 10% to Appeal Commissioner & Tribunal respectively.\
i) in cash/adjustment of Account current.
ii) waiver facility from prepayment to be reestablishment if there is a proper ground, subject to approval of Commissioner appeal.
We would request you to consider the issues in the light of development to Agro Processing Sector which has been recognized as a Thrust Sector by the Government. .
With regards.
Maj Gen Amjad Khan Chowdhury (Retd)
President
Bangladesh Agro-Processors’ Association
C.C. To:
01. Secretary, Ministry of Finance, Bangladesh Secretariat, Dhaka.
02. Secretary, Ministry of Commerce, Bangladesh Secretariat, Dhaka.
June 19th, 2007 at 6:26 pm
Income tax on pensioner’s sanchayapatra should be withdrawn in view of the exhorbitant high price of the essential commodities.