Analysis of Bangladesh National Budget- 2016. Presented by Abdul Motaleb, ID- 1126, 29th Batch, USTC.

1. Public Finance
Analyze Addition &
Recommendation of
National Budget 2015-16

2. Presented by
Abdul Motaleb
Roll- 1126
Department of Finance

3. New Additions
National Budget 2015-16
Public Finance

4. Foreign nationals to be brought
under tax net
The government will soon bring foreign nationals working
in Bangladesh under the tax net apart from imposing
penalty on those employing un-authorized foreign
nationals
Public Finance

5. Advantages
 Generate national
revenue
 Filling saving gap
 Foreign-Exchange gap
 Filling revenue gap
 Filling management gap
Disadvantages
 If foreign national workings
are under tax they are
demotivated to came
Bangladesh.
 We will not able to get
knowledge which we don’t
have
 Loss multicultural working
environment
 Increase illegal entry of
foreign employee
Public Finance

6. Tax on mobile SIM Card Users
With a view to ensuring the continued development of this
mobile sector, making the IT service easily attainable through
mobile phone and thus ensuring sustainable or equitable growth
for this sector, it is proposed to levy Tk. 100 as SIM tax for both
the instances of issuance and replacement of mobile SIM card.”
Public Finance

7.  Difficult to achieve vision 2021
Because-
 Majority people use SIM for communication and
information
 General user use internet through SIM card by smart
phone
 Without internet use can’t think digitalized the system
Public Finance

8. Budget proposes to levy VAT on private universities,
medical and engineering colleges.
 It will generate more cost on higher education
 Guardian may not able take the extra cost of their children
 Guardian demotivate to send their children to get higher
degree
 It will long term impact national resource
Public Finance

9. Bangladesh sets to cut subsidy by
5.5% in coming budget
 Long term barriers on agriculture
development
 People will not get proper health service
 Education industry get ling term impact such
as-
 Girls are demotivated if they don’t get any
support from govt.
 Parents will not allow their children to go
school for avoiding bear extra cost
Public Finance

10. Rural areas to come under black money
whitening scheme
People living in municipality and district headquarters will be
able to whiten undisclosed money by purchasing residential
apartments in these areas, as the Finance Bill 2015 cuts specific
tax on such purchases.
For this, people buying apartments with untaxed money will
have to pay Tk600 as tax per square meter of the apartment
area, says the finance bill. Under the existing arrangements, the
tax per square meter is Tk1,000
Public Finance

11. Advantages
 Generate revenue
 Real estate business
has emerged
 Cheap apartment
cost
Disadvantages
 Blacker may not
interested to take the
advantage to white
money scheme
Public Finance

12. To give loans to people of third gender to
help them do business
Bangladesh’s central bank has instructed all
banks and financial institutions to give loans to
people of third gender to help them run small
and medium businesses.
Public Finance

13. Public Finance

14. Recommendations
National Budget 2015-16
Public Finance

15.  Allocation on the educational sector should be revised;
this will help us invent more efficient techniques in every
sector which will make Vision 2021 easily achievable.
 In the budget FY15-16 it was demand of time to allocate
a special expenditure for reducing unrest situation of hilly
places of Bangladesh, which should actually aim at
raising their living standard & making them to mix up with
mainstream people.
 For capturing the huge worldwide outsourcing market, at
least 64 outsourcing hub should be made in total locating
each hub in each district along with 100 computers plus
broadband internet connections respectively, which will
help to attain the goals of ‘Digital Bangladesh’.
Public Finance

16.  It is high time to make the Stock Market stable. To do so,
a new institution named Stock Market Rehabilitation
should be officially structured for pressurizing the present
& upcoming foreign entrepreneurs & companies to put at
least 10% share of their respective companies within a
year at Bangladesh share market.
 New kind of taxes such that ‘Coal Import Tax’ & ‘Carbon
Tax’ should be introduced, by which we can buy coal from
international market to meet our increasing demand for
energy production & allocation.
 ‘Carbon Tax’ should be imposed primarily at lower rate on
the all companies which leave carbon gas in nature. This
will help us step by step, recovering our polluted nature
by creating planned forestation in every city & industrial
area.
Public Finance

17.  For collecting the income tax properly, finding out the
eligible people by endowing job seekers for a short
period, National Board of Revenue can earn more than its
estimated earnings.
Last one is can be modified by my suggestion-
 Focus resources on improved auditing, processes, and
tools
 Use simple segmentation to identify larger collection
opportunities
 Ensure regular updates to the taxpayer registry
 Use electronic channels for simple transactions
 Simplify the tax system to encourage formalization
Public Finance

18. Another recommendation we can
add
 Tax should be imposed VIP road user
 Reward on tax pay system to motivate eligible people
who do not give tax
 Impose tax on domestic flight
Public Finance

19. Thank You Everybody
shobuj_ctg09@hotmail.com 19
Public Finance