CGA Bangladesh Budget Discussion 2020 2021_By CGA Md.Monowar FCA,FCMA,FCS,CPFA,FCGA

The Institute of Certified General Accountants of Bangladesh (ICGAB)
1111 CGA Bangladesh
Budget Discussion:2020-2021
Update:14/06/2020
CGA Md.Monowar Hossain FCA, CPA
FCMA, FCS, FCGA, FIFC, CIFRS, CIPFA(UK)
Chief Financial Officer (CFO) and
Head of Internal Control & Compliance (ICC)
Agrani Bank Limited16 June 2020 Md.Monowar Hossain FCA,CPA 1

2222 CGA Bangladesh
Update:14/06/2020
16 June 2020 Md.Monowar Hossain FCA,CPA 2
• The country's 12th Finance minister
AHM Mustafa Kamal FCA, MP proposed the
new fiscal measures that included an
unlimited scope for legalising untaxed
assets like land, flats, cash and savings by
undisclosed money holders, the allocation
of a lump sum Tk 10,000 crore on account
of the COVID-19 calamity and the
imposition of penalty against over- and
under-invoices.
“Economic transition and pathway to progress"
• Tk 568,000 crore national budget for 2020-21,
which is 17.9% of country's GDP
• GDP growth target projected at 8.2%

3333 CGA Bangladesh
Update:14/06/2020
Also proposed relief to taxpayers by
increasing the lowest taxable amount to
Tk 3.00 lakh reducing the highest income
tax rate to 25% from the current 30%,
and cutting corporate tax for non-listed
entities.
Proposed an allocation of Tk 95,574 crore for
running the social safety net programmes
under different ministries and divisions,
which was Tk. 81,865 crore in the outgoing
fiscal. The fund has been targeted to bring at
least 11 lakh new beneficiaries under the
coverage of the social security programmes.
The country’s tax-GDP ratio,
one of the lowest in the South Asia region.
https://www.newagebd.net/article/108353/legalisation-of-untaxed-money-yields-little
We are expecting that the installation of
machines to collect VAT and automation of
the NBR would help mobilise higher revenue
and take the tax-GDP ratio to 15% per cent in
the near future. FM

4444 CGA Bangladesh
Update:14/06/2020
16 June 2020 Md.Monowar Hossain FCA,CPA 4https://www.thedailystar.net/tk-568000-crore-budget-2020-21-unveiled-8.2pc-gdp-growth-target-set-1912729
• The total allocation for operating and other
expenditures has been projected at Tk 3,62,855
crore and the allocation for the annual
development programme (ADP) has been
estimated at Tk 2,05,145 crore.
• Health, agriculture and employment creation have
been given priority while allocating resources for
the ADP.
• The overall budget deficit is Tk 190,000 crore,
which is 6% of GDP. Out of the total deficit,
Tk 80,017 crore will be financed from external
sources, while Tk 1,09,983 crore from domestic
sources of which Tk 84,983 crore will come from
the banking sector and Tk. 25,000 crore from
savings certificates and other non-bank sources.
Note: Deficit stood at 5% in the last fiscal year.

5555
CGA Bangladesh
Update:14/06/2020
https://www.newagebd.net/article/108213/big-budget-with-record-deficit-unveiled
The revenue collection target for the coming fiscal year has been set Tk 378,000 crore. Of the
amount, the NBR has been tasked to realise a revenue collection target of Tk 330,000 crore,
the non-NBR revenue collection target is Tk 15,000 crore while the non-tax revenue collection
target is Tk 33,000 crore. Besides, Taka 4,013 crore will come from foreign grants.

6666
CGA Bangladesh
Update:14/06/2020

7777
CGA Bangladesh
Update:14/06/2020
Tax Tk. 103,945 Crore (31.50%)
Vat 125,162 Crore (37.93%)
Import & other Duty 43,078 Crore (13.05%)
Supplementary Duty 57,815 Crore (17.52%)
Tk. 330,000 Crore (100%)

8888
CGA Bangladesh
Update:14/06/2020
Publicly traded company 25%
Non-publicly traded company 35% 32.5%

9999
CGA Bangladesh
Update:14/06/2020
 SMEs : HPM has declared Light Engineering as the Product of the Year’ for 2020. Therefore it is proposed to reduce
tax rate on import of raw materials of some products
 Export Sector: It is proposed to reduce the existing duty rate on the import of certain products (such as RFID Tag,
Industrial Racking System, Cutting Table, etc. to promote export oriented garments and textile industries
 Footwear Industry: FM proposed to reduce the duty rate of three raw materials imported by this industry
 Electronics Industry: It is proposed to expand the existing concessionary duty benefit on the import of raw materials by
the refrigerator and air conditioner compressor manufacturing industry
 Shipbuilding Industry: It is proposed to withdraw the existing duty exemption on the importation of dredgers
 Detergent Industry: It is proposed to decrease the existing rate of customs duty of Linear Alky/ Benzene Sulphonic Acid
 Sanitary Napkin and Diaper Industry: It is proposed to expand the tax benefit on sanitary napkin and diaper industry
by decreasing the rate of customs duty on the import of a raw material

10101010
CGA Bangladesh
Update:14/06/2020

11111111
CGA Bangladesh
Update:14/06/2020
Health Sector
To combat the outbreak of the COVID 19 special
notification has been
issued as an interim mechanism before budget
to exempt all import duties and taxes on
coronavirus testing kits, masks and personal
protective equipment (and on the raw materials
required to locally produce hand sanitizers,
masks and PPE To further strengthen the health
sector, It is propose to reduce import duty on
essential raw
materials for locally producing Autoclave
machines used for sterilizing medical
instruments

12121212
CGA Bangladesh
Update:14/06/2020

13131313
CGA Bangladesh
Update:14/06/2020
Md.Monowar Hossain FCA,CPA 13
Shahidul Islam
+880 1713-033653

14141414
CGA Bangladesh
Update:14/06/2020

15151515
CGA Bangladesh
Update:14/06/2020

16161616
CGA Bangladesh
Update:14/06/2020

17171717
CGA Bangladesh
Update:14/06/2020

18181818
CGA Bangladesh
Update:14/06/2020
• Proposed the
mandatory
return for all
TIN holders
and offered Tk
2,000 tax
waiver for
submitting it
electronically

19191919
CGA Bangladesh
Update:14/06/2020

20202020
CGA Bangladesh
Update:14/06/2020
https://www.newagebd.net/article/108353/legalisation-of-untaxed-money-yields-little
Since the country’s independence, only Tk 18,376 crore untaxed money
has been legalized under the scopes offered by governments from time to
time in various ways.
The NBR has collected Tk 1,529.46 crore in tax from the untaxed money-
holders during the period.
The government got the expected response from the untaxed money
holders except in 2007–09. In those three years, Tk 9,682.99 crore, over
50% of the overall untaxed money since the country’s Independence,
flowed into the mainstream economy.
 Proposed to legalise undisclosed money by
investing it in land, flats, cash and savings
certificates by paying only a 10% tax in the
new fiscal year.
• Hundreds of taxpayers did not declare
assets with their tax files as most of them
relied on tax lawyers to prepare the TIN
returns.
• Many tax lawyers often misguided their
clients by furnishing information beyond
the knowledge of the taxpayers just to
complete the formality.
https://www.dhakatribune.com/business/2020/06/13/explainer-black-money-what-why-and-how

21212121
CGA Bangladesh
Update:14/06/2020

22222222
CGA Bangladesh
Update:14/06/2020

23232323
CGA Bangladesh
Update:14/06/2020

24242424
CGA Bangladesh
Update:14/06/2020
Price Decline
 Gold
 Mobile phone services,
 Automobiles,
 Air conditioner,
 Detergent,
 Sanitary napkin & diaper
 Steel product (re bar, etc.)
 LPG Cylinder
 Local Refrigerator and AC
Price Hike
o Cigarettes
o Plastic products
o Ticket of Air conditioned Steamer
o Chartered (renting) Aircraft and
Helicopter
o Cosmetics items
o Furniture
o Imported Onion
o Cellular phone/service usages
o Registration and fitness of car/jeep
o Ceramics silk
o Imported Honey

25252525
CGA Bangladesh
Update:14/06/2020

26262626
CGA Bangladesh
Update:14/06/2020

27272727
CGA Bangladesh
Update:14/06/2020

28282828
CGA Bangladesh
Update:14/06/2020

29292929
CGA Bangladesh
Update:14/06/2020

30303030
CGA Bangladesh
Update:14/06/2020
Excise duty is now collected on Bank Accounts and Airline tickets under the
Excises and Salt Act, 1944. Propose to amend and insert certain sections to
fix the excise duty rates on bank balance at the following rates:
a) In cases where the balance exceeds Tk. 10 lakh but does not exceed
Tk. 1 crore, Excise duty has been proposed to increase from
Tk. 2,500/- to Tk. 3.000/-;
b) In cases where the balance exceeds Tk. 1 crore but does not exceed
Tk. 5 crore, Excise duty has been proposed to increase from
Tk. 12,000/- to Tk. 15,000/-; and
c) In cases where the balance exceeds Taka 5 crore, Excise duty has
been proposed to increase from Tk. 25,000/- to Tk. 40,000/-;
However, the applicable excise duty rates will remain unchanged in cases
where the bank account balance does not exceed Tk. 10 lakh at any time
during a year.

31313131
CGA Bangladesh
Update:14/06/2020

32323232
CGA Bangladesh
Update:14/06/2020
• With the opportunity offered to money launderers by the government to whiten black money failing to draw a
significant response, the new budget has made a new, lucrative proposition -- invest the money and no one, not
even the income tax authority, will be able to question its source.
• Proposed imposing a 50% penalty on misdeclaration of exports, imports and investments in overseas countries as
the government aims to increase tax revenue and prevent money laundering
• RMG export: 1% additional cash incentive to continue, source tax hiked to 0.5%
• E-Judiciary project proposed for reducing time and costs
• Tk 568,000 crore budget unveiled; 8.2% GDP growth target set
• Tk 100 crore health research fund proposed
• Tobacco products to become costlier in FY 2020-21
• Chartered flights to become costlier; supplementary duty hiked to 30%
• Climate Change: Disaster management and relief budget to be decreased in upcoming fiscal year
• Tk 29,247 crore proposed for health services, health education, family welfare
• No individual tax for income below Tk 3 lakh : The tax-free income limit for individual taxpayer has been increased
• Gold prices may fall: Proposed withdrawal of VAT on import of gold.
• Source tax rate from exports doubles to 0.5% (existing 0.25%)
• Mobile phone users to pay more: Supplementary Duty is set to increase to 15% from the existing 10%
• Allocated Tk 95,574 crore in the social safety net programmes, which is 16.83% of total budget and 3.01% of GDP in
FY 2020-21. In last year’s revised budget, the allocation was Tk. 81,865 crore.
• Budget for coronavirus-battered education sector unchanged
https://www.thedailystar.net/tags/bangladesh-budget-2020-21

33333333
CGA Bangladesh
Update:14/06/2020

CGA Bangladesh Budget Discussion 2020 2021_By CGA Md.Monowar FCA,FCMA,FCS,CPFA,FCGA

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to CGA Bangladesh Budget Discussion 2020 2021_By CGA Md.Monowar FCA,FCMA,FCS,CPFA,FCGA

Similar to CGA Bangladesh Budget Discussion 2020 2021_By CGA Md.Monowar FCA,FCMA,FCS,CPFA,FCGA (20)

More from Md.Monowar Hossain FCA,CPA

More from Md.Monowar Hossain FCA,CPA (6)

Recently uploaded

Recently uploaded (20)

CGA Bangladesh Budget Discussion 2020 2021_By CGA Md.Monowar FCA,FCMA,FCS,CPFA,FCGA