DHAKA, June 11, 2020 (BSS) – Finance Minister AHM Mustafa Kamal today said that many commitments that he had made while placing budget for last fiscal year (FY20) have already been implemented while the process of implementation of others is underway.
“I made a number of commitments while presenting the national budget for FY 2019-20. Of them, many commitments have already been implemented, and the process of implementation of others is underway,” he said while placing the proposed budget for fiscal year (FY21) in Jatiya Sangsad.
To ensure that remittance earnings come through formal channels, Kamal said cash incentive at the rate of 2 percent on remittance earnings by non-resident Bangladeshis has been given since 1st July 2019.
“As a result, a new record of US$ 16.56 billion in remittance inflows has been achieved in just 11 months of this fiscal year surpassing the previous record of US$ 16.42 billion in 12 months of the preceding fiscal year,” he added.
To boost exports of readymade garments, he said the government is providing 1 percent cash incentive to exports of readymade garments (RMG) in all sectors since 1st July 2019.
In order to enhance competitiveness of industrial and business sector, the Finance Minister said the interest rate on bank loans was reduced to a maximum rate of 9 percent from 1st April 2020.
To introduce new financial tools in the banking and financial sector, he said the Venture Capital Guideline has been formulated; the Bangladeshi Taka denominated ‘Bangla Bond’ was introduced for the first time at the London Stock Exchange; and Stamp Duty on trust deeds in the bond market have been reduced.
Besides, to promote the capital market and encourage investment, the government has undertaken a number of steps, which include – (a) making tax-free the dividend income in the stock market of upto Tk. 50,000; (b) removal of double taxation in the income from the share market; and (c) making the mandatory provision of declaration of cash dividend instead of stock dividend on at least 50 percent of dividend earnings.
To bring 100 percent import and export consignments under scanning, the Finance Minister said two new scanners have been installed in this fiscal year, and procurement of another 14 scanners is currently in progress.
As part of ensuring minimal tax exemptions, compared to FY 2018-19, Kamal in his budget speech said exemptions have been reduced by 41 percent in income tax, 21.34 percent at the import stage and 92 percent in value added tax respectively in the current fiscal year.
Apart from this, two dedicated benches have been set up at the Hon’ble Supreme Court for speedy disposals of cases related to financial and revenue matters. “As part of our budget commitment to reform the bank, financial and revenue sectors, we have taken up the task of amending 10 existing laws, and drafting 6 new laws,” he added.
Mentioning that around 2.20 lakh pensioners have been brought under online payment through electronic fund transfer (EFT) system, Kamal said the government expects that during the ongoing Mujib Borsho, all pensioners will be brought under the EFT.
Besides, he said the government has digitised the sales, profit encashment of national savings certificates (NSCs) by introducing the ‘National Savings Scheme Online Management System’. The postal savings scheme and the postal banking system have also been automated.
The Finance Minister said as part of the government’s commitment to introduce Insurance Schemes in different sectors, it has introduced the livestock insurance scheme; (b) has begun the task of formulating the health insurance scheme for government employees; and (c) will take steps to introduce insurance in the agriculture sector.
Kamal informed the house that a total of 2,620 secondary, higher secondary and technical education institutions and madrasas have been brought under the Master Pay Order (MPO) system in the current fiscal year.
He said a guideline has been prepared to rehabilitate the affected people from the river erosion-prone areas, and an allocation of Taka 100 crore has been made.
“We have not been able to implement other commitments due to the outbreak of COVID-19. However, we will soon implement them,” he added.