ZCZC
JS-53
BUDGET-FY20-INDUSTRY
Govt plans to drive up industrial investment
DHAKA, June 13, 2019 (BSS) – The government is planning to drive up industrial investment, maximum utilization of the installed capacity of the existing industries and make export-oriented industries more competitive through its diversified expansion.
This was revealed today in the proposed budget placed in parliament by finance minister AHM Mustafa Kamal.
“Industry is now the second largest sector in terms of contribution to the GDP. This contribution of the industrial sector is increasing day by day. Moreover, this sector is highly contributing to employment generation and investment,” the finance minister’s budget speech read.
To protect local dairy industry, the government proposed to increase from the existing 5 percent custom duty (CD) to 10 percent on milk powder import.
The government also proposed to increase existing specific duty from Taka 2000 on per metric ton (MT) to Taka 3000 per MT on import of raw sugar.
“For refined sugar the specific duty will be increased from Taka 4,500.00/MT to Taka 6,000.00/MT,” the budget speech read.
Regulatory duty will be 30 percent instead of 20 percent for both refined and raw sugar import.
Exemptions and concessionary rate of duties of some pharmaceutical raw materials including that of cancer medicine, have been proposed.
Moreover, the government proposed to decrease regulatory duty from 20 percent to 10 percent on import of liquid Oxygen, Nitrogen, Argon and Carbon Dioxide for making these lifesaving gases available to the poor patients at low cost.
To protect domestic industries, the government proposed to increase regulatory duty on Maize (corn) starch, Manioc (Cassava) starch and gypsum board import.
The government also proposed to increase supplementary duty on import of particle board and domestic electrical articles. Moreover, they also proposed to allow import of some essential raw materials of lift, refrigerator, compressor, air conditioner, electric motor, mold and footwear industries at a concessionary rate.
As per the budget speech, rice bran is the prime raw material of rice bran oil. As there is a huge demand from local rice bran industries, the government propose to increase export duty of rice bran from 10 percent to 25 percent to discourage exports.
The government also proposed to withdraw existing 10% export duty on unmanufactured tobacco and to decrease existing export duty of building bricks from 25% to 15%.
BSS/KUC/KU/1941 HRS