Government of the People's Republic of Bangladesh Budget 2019-20.

1. Faculty of
Business Administration
Jatiya Kabi Kazi Nazrul Islam University
Assignment on : Analysis on Bangladesh National Budget 2019-2020
Course Name : Public Finance
Course Code : FB 301
Presented to Aslam Mahamud
Lecturer
Finance & Banking Department
Presented by Abdullah Al Noman
ID. 17132640
Session 2016-17
Finance & Banking Department
Date of Submission 23 June 2019

2. National Budget 2019-20
Government of the People's Republic of Bangladesh
The Government of the People’s Republic of Bangladesh has passed a budget of about BDT
5.23 trillion- ie Taka 523,190 core (approx. USD 62 billion) for fiscal year 2019-20. In a
decade 200506 to 2019-20, the budget grew from a mere 64,000 crore Taka to 523,190 crore
Taka.
This is 48th budget for Bangladesh. First budget of Mustafa Kamal as a finance minister. He
claimed that it’s a smart budget and the best one ever Bangladesh budget history. Presenting
Budget: Thursday (June 13, 2019)It passes in Parliament on 30th June. It will be effective from
1 July, 2019. Reading the budget at the parliament by Prime Minister Sheikh Hasina was the
most interesting fact and it occurred first time ever Bangladesh history.
The size of Bangladesh economy is growing day by day. By next two decades, Bangladesh
will become one of the top thirty economies of the world. Integration with global economy is
also increasing. Overall indicators are positive.
Facts of the budget 2019-20:
The size of the budget 523190 crores Taka (which is 18.1 percent of GDP). Highest
allocation in public administration sector (18.5%). Tax free income limit: Tk 250,000. Target
revenue target is 3 lakh 77 thousand 810 cores, this is equal to 13.1 percent of GDP. The
deficit in the budget - 1 lakh 45 thousand 380 crores. (Which is 5 percent of GDP). Foreign
loan will be charged 68 thousand 16 crore taka. Rest 77 thousand 363 crore will be collected
from the internal source.
GDP growth rate - 8.2%
Inflation rate - 5.5%

3. Revenue Collection Activities:
“Boosting revenue mobilization not by increasing the tax rate but by widening the tax net and
coverage”--------------- revenue offices in every Upazilas----------to make 1 crore tax payers---
to raise revenue collection to GDP ratio to 14%
The investors expect continuity in tax policy and long term stability. In this circumstance, in
tax reforms, budget has laid emphasis on three areas: (a) continuity and stability of tax policy,
(b) transparent enforcement procedures, and (c) simplified business operations.
To finance the proposed 5.23 trillion Tk expenditures, tax revenue is 3.26 trillion Tk.
325,660 crore Tk as enumerated below:
Income Tax
Personal tax rates are same with little changes in income threshold.
And Minimum tax for a person except company tax payer is Taka 3,000.
Corporate tax rates remain unchanged too except bank and financial institutions.
Only Ready Made Garments tax rate is 12% (10% if green building certified)
Textile sector Tax rate is 15

4. VAT (Value Added Tax):
Rates of VAT at Source on Services- PROPOSED by the finance bill 2019-20
Sl S. code Service provider VAT rate at source
1 S 001.20 Non-A/C Hotel and Restaurant 7.5%
2 S 002.00 Decorators and caterers 15.0%
3 S 003.10 Motor workshop and garage 10.0%
4 S 003.20 Dockyard 10.0%
5 S 004.00 Construction company 7.5%
6 S 007.00 Advertisement agency 15.0%
7 S 008.10 Printing and press 10.0%
8 S 009.00 Auctioneer 10.0%
9 S 010.10 Land developer 5.0%
10 S 010.20 Building constructor 5.0%
11 S 014.00 Indenting agency 5.0%
12 S 020.00 Survey firm 15.0%
13 S 021.00 Plant or machinery leasor 15.0%
14 S 024.00 Sales centre of furniture 5.0%
15 S 028.00 Courier and express mail service 15.0%
16 S 031.00 Repairs or servicing of goods 10.0%
17 S 032.00 Consultancy and supervisory firms 15.0%
18 S 033.00 Lease/leasor 15.0%
19 S 034.00 Audit and accounting firm 15.0%
20 S 037.00 Procurement provider 7.5%
21 S 040.00 Security service 10.0%
22 S 045.00 Legal consultants 15.0%
23 S 048.00 Carriage/transporter 10.0%
24 S 049.00 Transport plyer/provider 15.0%
25 S 050.10 Architect, interior design/decorator 15.0%
26 S 050.20 Graphic designer 15.0%
27 S 051.00 Engineering firm 15.0%
28 S 052.00 Supply of light and sound systems 15.0%
29 S 053.00 Attendant- board meeting 10.0%
30 S 054.00 Advertisement broadcaster via satellite tv 15.0%
31 S 058.00 Chartered aircraft/helicopter 15.0%
32 S 060.00 Buyer of auctioned goods 5.0%
33 S 063.00 Tailoring shop and Tailors 10.0%
34 S 065.00 Cleaner/maintenance of building and floor 10.0%
35 S 066.00 Seller of lottery tickets 15.0%
36 S 069.00 English medium school 5.0%
37 S 071.00 Program organizer 15.0%
37 S 072.00 HR consultants/employee recruitment services 15.0%
38 S 079.00 Social Media and Virtual Business 7.5%
39 S 099.10 IT enabled services 5.0%
40 S 099.20 Other various services 15.0%
41 S 099.30 Sponsorship services 15.0%
42 S 099.60 Credit rating agency 15.0%

5. What cost more? Tobacco items; Bank service; Air tickets etc.
What cost less? Commodities such as food items; Medicines; Agriculture; fisheries; Domestic
Oil; Air-cooling machines; Domestic Refrigerators; LNG Gas Cylinder; Hybrid vehicles;
Laptops; Cellular phone; LPG etc.
AND Local fish, poultry, dairy, and life saving drugs, textile raw materials, leather goods
exported, Milk Power Processing, etc.