Budget 2022-23.

 

Budget 2022-23.

 Budget 2022-23.

For the fiscal year 2022-23, the proposed budget is 6 lakh 78 thousand 64 crore. Tk 4,31,998 crore for other sectors, including management, and Tk 2,46,66 crore for the yearly development program have been recommended.

AHM Mustafa Kamal, the Finance Minister, presented the proposed budget for the fiscal year 2022-23 in Parliament on Thursday. "A change in the continuity of development beyond the impact of Kovid," according to the finance minister's budget statement.

The entire income target has been set at Tk 4 lakh 33 thousand crore in the proposed budget. Tk 3 lakh 70 thousand crore will be available from the National Board of Revenue's tax collection (NBR). Tk 18,000 crore will come from NBR non-tax, with non-tax receipts expected at Tk 45,000 crore.

This year's budget would have a total deficit of 2 lakh 45 thousand 64 crore. 1 lakh 46 thousand 335 crore will come from domestic sources, of which 1 lakh 6 thousand 334 crore will come from the banking sector; 98,729 crore will come from foreign sources, including grants in the deficit; and 1 lakh 6 thousand 334 crore will come from the banking sector.

7 and a half percent of GDP.

The growth of gross domestic product (GDP) has been set at 7.5 percent in the budget for fiscal year 2022-23. The growth has also been deemed temporary in the budget for the fiscal year 2021-22.

The World Bank had previously stated in a report on April 13 that GDP growth in the current fiscal year (2021-22) might reach 6.4 percent. GDP growth is expected to be 6.9% in the upcoming fiscal year (2022-23). The average GDP growth rate over the last 13 years was 6.6 percent.

The corona has slowed the country's economic progress, according to the World Bank, although the trend of ready-made clothing exports remains strong. If the market share of garment exports in various markets, including Europe, can be maintained, the desired GDP growth can be achieved in the current fiscal year. According to the World Bank, if local demand is met in the current fiscal year, the desired growth can be attained in fiscal year 2022-23.

Inflation is 5.6 percent.

The government is committed to preventing supply and demand discrepancies in order to keep inflation under control. Inflation was under control until the first quarter of this year, but it has since risen due to foreign and some internal factors, according to the finance minister in his budget speech.

Rising trade partner inflation, rising fuel prices, declining currency, disruption of the global supply chain, and the Russia-Ukraine war are all worldwide sources of inflation. In order to keep inflation under control, the next budget will include a number of measures. Inflation will be 5.6 percent in the fiscal year 2022-23.

The middle class will be brought under the tax.

The finance minister stated in his budget speech that the country's middle or high class population is around 40 million people, the majority of whom do not pay income tax. Efforts are being made to bring taxable people into the tax net by putting in place the essential measures to prevent tax evasion.

The number of tindhari has risen to 75 lakh 10,000 by April of last year. Furthermore, up until last March, the number of taxpayers had climbed to 29 lakh. The government is striving to reach a target of one crore tin holders. Except in a few situations, everyone will be required to submit a return.

Tax-free income limit has not been increased.

The projected budget does not bring any good news to ordinary taxpayers. The planned budget for fiscal year 2022-23 does not increase the tax-free income cap. This limit has been maintained at three lakh rupees.

Individual taxpayers' tax-free income ceiling was just Tk 1.65 lakh in the 2009-10 fiscal year, according to the Finance Minister, but it has been gradually increased to Tk 300,000 in the 2020-21 fiscal year. This limit will be maintained in the following fiscal year.

Allocation for education has increased.

The entire allocation of money in the education sector under the Ministry of Primary and Mass Education and the Ministry of Education is growing in the coming fiscal year. In comparison to the current fiscal year, a total allocation of Tk 9,495 crore has been requested for the next fiscal year. In the future fiscal year, a total budget of Tk 81,449 crore has been recommended for these two ministries, up from Tk 71,954 crore in the current fiscal year.

4 thousand crore has increased in health.

In the proposed national budget, 5.4 percent has been made out for the health sector. In the current fiscal year, 32,731 crore has been set aside for health. For the fiscal year 2022-23, a total of 36,863 crore has been set aside. In other words, the Ministry of Health's budget has been boosted by Tk 4,132 crore.

Surrey subsidy 16 thousand crore.

The fertilizer subsidy has been enhanced by Tk 4,000 crore in this year's proposed budget.The provision for Surrey subsidies was fixed at Tk 9,000 crore in the current fiscal year's budget. However, due to an increase in fertilizer prices around the world, it ended the year at 12 thousand crore rupees. The amount of subsidies has been increased to Tk 16,000 crore this time due to the continued price growth.

Proposal to increase disability allowance.

The monthly stipend for people with disabilities has been recommended to be increased in the proposed budget for the fiscal year 2022-23. Persons with impairments currently receive a monthly payment of Tk. 750. It has been proposed that this allowance be increased by 100 rupees per month to 850 rupees per month. Simultaneously, it has been proposed that the number of disability beneficiaries be increased to three and a half lakh.

In the fiscal year 2022-23, Tk 2,429 crore has been recommended for disability allowance. Monthly allowances were paid to 20 lakh 8 thousand disabled people in the fiscal year 2021-22. In the fiscal year 2022-23, it has been suggested to increase the number of beneficiaries to 3 lakh 57 lakh. There will be a total of 23 lakh 65 thousand people who will benefit.

Road and rail allocation has increased.

The proposed budget allocates more funds to the road sector. The Road Transport and Highways Department has been allocated Taka 31,296 crore in the proposed budget, accounting for 12.7 percent of the total development allocation. This sector received Tk 28 thousand 42 crore in the current financial year.

Good news for startups.

This year's budget brought excellent news to businesses who are just starting out. The rate of turnover tax for startup entrepreneurs has been proposed to be reduced from 0.60 percent to 0.1 percent. Furthermore, except for the filing of an income tax return, all other reporting requirements have been waived. In the proposed budget, the finance minister also recommended adjusting startup company losses for a period of nine years. It also proposes that spending limits on startup entrepreneurs be lifted in order for them to build their businesses through worldwide competition.

Many sewage treatment plants (STPs) are being built in Bangladesh with the goal of making the country's environment more sustainable and pollution-free, and demand is growing. It has been proposed that the import duty be reduced to 5%. For a long time, the import duty was set at 25%.

Products or services that may be priced lower.

The Finance Minister has proposed that the VAT on both air-conditioned (AC) and non-air-conditioned (NON-AC) restaurants be reduced. All existing tariffs on the importation of adapted wheelchairs for the physically handicapped are recommended to be abolished. It has been proposed that the import charge on cashew nuts be reduced from 25% to 1%.

Sugar and sugar traders will be free from VAT, according to the finance minister. The government has exempted substances used in poultry and cow feed from paying taxes. Hand towels, paper towels, and clinical bedsheets would be exempt from VAT, according to the Finance Minister's proposal.

In order to sell liquefied petroleum gas (LPG) in bulk (in bulk), a VAT exemption for the first stage of bulk purchasing has been proposed. The VAT on yarn has been decreased. VAT exemption for Braille printing materials for the visually handicapped has been proposed. The Finance Minister has proposed that the relevant duty on hearing aid batteries for the hearing impaired be reduced.

Laptops, cars will go up in price.

Finance Minister AHM Mustafa Kamal recommended imposing a 15% value added tax (VAT) on imported computers in the proposed budget for fiscal year 2022-23. As a result, you will need to invest additional funds to purchase a laptop.

The proposed budget raises the extra charge on automobiles with engines ranging from 2001 to 3000 cc from 200 to 250 percent. The extra charge on automobiles with engines ranging from 3001 to 4000 cc has been raised from 350 to 500 percent. However, the extra duty on automobiles with engines larger than 4000 cc has remained unchanged, at 500 percent.

The prices of other products or services may go up.

Cigarettes can become more or less expensive, and the price of each type of cigarette might rise or fall. Bidi is likewise becoming more expensive. The proposed budget for fiscal year 2022-23 raises the price of cigarettes and bidis.

First-class train tickets will be subject to a 15% value added tax, according to the Finance Minister's proposal. As a result, first-class train rates are expected to rise by at least 15%.

It has been recommended in the projected budget for the next financial year (2022-23) to levy a 5% import fee on foreign lifts. This could raise the cost of international lifts.

The finance minister has suggested a 20% extra duty on processed and ready-to-consume coffee imports in the proposed budget for 2022-23. This may result in a price rise for this product.