Dhaka, Bangladesh (BBN) - The BBN (Bangladesh Business News) has prepared the morning news highlights compiling reports, published by different newspapers and news portals in Bangladesh.
Bangladesh unveils ‘mega’ budget with high hopes of prosperity
Bangladesh Finance Minister AMA Muhith placed BDT 2.95 trillion (US$37.93 billion) “mega” budget outlays for the fiscal year (FY) 2015-16 at the National Parliament of Bangladesh on Thursday aiming to transform the country into a land of prosperity. The proposed budget has downsized the country’s gross domestic product (GDP) growth projection at 7.0 per cent from 7.3 per cent of the outgoing fiscal year while the target for containing inflation in the new fiscal year has been set at 6.2 per cent. The original budget for the outgoing fiscal year was BDT 2.50 trillion which was later revised to BDT 2.40 trillion. Wearing his favourite pajama and panjabi with a ‘Mujib Coat’, Mr. Muhith started delivering his 135-page Budget Speech in parliament through power-point presentation from 3:30 pm (local time) for nearly five hours in presence of the ruling and opposition party MPs.
Goal high on hopes
For Finance Minister AMA Muhith, it was a moment of reality check, strategizing and some shifting of blame for failure when he proposed the budget for the next fiscal year yesterday. But he fell way short in actually proposing or visualising what big things he wants to do to achieve his growth target of 7 percent next year. He was candid and truthful when he said his plans did not gather “expected momentum” during this year and private investment was not forthcoming. But then he put political uncertainties as a scapegoat of non-achievement of targets for this year and also for possible shortcomings next year too as he mentions “making further progress hinges on favourable political environment”.
Budget aims to break '6.0pc growth trap'
Finance Minister AMA Muhith placed Thursday in parliament (Jatiya Sangsad) a fat budget that intends to take the economy out of the '6.0 per cent growth trap', spurring both private and public sector investments. In the quest for higher economic growth, some macroeconomic advantages, including low inflation, declining rates of interest, stable exchange rate, healthy foreign exchange reserve, positive balance of payments will be on the side of the finance minister in the next fiscal. But the finance minister will be required to address a few fault lines in areas such as revenue mobilisation, implementation of the Annual Development Programme (ADP), external trade, manpower export and inflow of foreign assistance.
Bangladesh to borrow BDT385.23bn from banks to finance budget deficit
The Bangladesh government is set to borrow BDT 385.23 billion from the banking system to finance the budget deficit partly for the next fiscal year (FY) 2015-16. Under the proposed budget, BDT 241.82 billion will be borrowed issuing long-term Bangladesh Government Treasury Bonds (BGTB) while the remaining BDT 143.41 billion through treasury bills (T-bills). The government earlier targeted borrowing a total of BDT 312.21 billion from the banking system through T-bills and BGTBs for the part-financing of budget deficit for the FY 15.
Business leaders welcome proposed budget
Businessmen and chamber leaders yesterday welcomed the proposed budget for 2015-16 as the finance minister announced some good initiatives to help domestic industries thrive. The business leaders also urged the government to ensure proper implementation of the proposed budget and to simplify the taxation system to encourage more people to pay taxes. “I am very happy with the budget proposal as it will help support local industries. There are a lot of measures to help local industries grow,” Abdul Matlub Ahmad, president of the Federation of Bangladesh Chambers of Commerce and Industry, said.
Corporate tax cut for listed banks, NBFIs, Ins cos
The proposed budget has cut corporate tax rate for listed banks, non-banking financial institutions (NBFIs) and insurance companies by 2.5 per cent and also trimmed down the tax rate for other listed companies to 25 per cent. Both listed and non-listed banks, NBFIs and insurance companies are currently paying 42.5 per cent corporate tax on their incomes. Listed companies are paying tax at 27.5 per cent.
Bangladesh to raise source tax on apparel sector
Bangladesh government has proposed to increase source tax on readymade garment (RMG) sector to 1.0 per cent from the existing level of 0.3 per cent. Currently, 0.30 per cent source tax is applicable for readymade garment (RMG) sector and 0.60 per cent for other sectors which was reduced from 0.80 per cent considering special circumstances for the ongoing fiscal year 2014-15. “Our textile and garment industry alongside other export items are enjoying various incentives,” Finance Minister AMA Muhith said in his budget speech on Thursday.
Internet use to get costlier
The use of internet is going to get costlier as the government has proposed increasing the duty on optical fibre and imposing additional duty on mobile internet use. Finance minister Abul Maal Abdul Muhith placed the national budget proposals for the financial year 2015-16 before the parliament on Thursday. Muhith proposed to exclude the optical fibre cables from an existing concession list and increased the duty on it to 10 per cent from existing 5 per cent. Optical fibre cable is a cable containing one or more optical fibres that are used for different applications including long distance telecommunication or providing a high-speed data connection.
Bangladesh cell phone users to pay more
The mobile phone users of Bangladesh will have to pay more as Finance Minister AMA Muhith has proposed to impose five per cent supplementary duty on mobile phone services. “I propose to impose 5 percent supplementary duty on the services provided through SIM and RUIM card of mobile phone,” said Bangladesh Finance Minister while placing national budget for the fiscal year 2015-16 at the national Parliament in Dhaka Thursday afternoon.