It's forward looking and investment-friendly
THE budget relies heavily on revenue generation. A wide variety of goods will now be taxed ranging from bottled water to a new range of taxation on mobile phones, jewellery to sales tax on real estate. Though revenue is bound to increase, so will the retail prices of all products that have been brought under the purview of tax net. The budget however has been welcomed by business leaders as 'investment friendly'. Taxes and duties waived on fire safety equipment should go a long way in retrofitting factories across the RMG sector and should help in addressing fears for workers' safety. The various chambers of commerce have welcomed the steps taken, for instance, offer of 20 percent tax rebate for factory relocation away from Dhaka should encourage both the tannery industry and other sectors to move away from the capital city.
All is not however positive. Once again, holders of black money have been given opportunity to legalise undisclosed monies by investing in real estate sector. The move has been slammed by economists as having such provision is discriminatory in that it discourages honest taxpayers and fosters culture of tax evasion. For the average consumer, the budget brings both more of good than bad tidings. Healthcare should cost less as duties have been reduced on 40 basic raw materials used to make medication. Taxes have also been waived on bonds and savings certificates up to Tk500,000. On the whole, the budget provides a sense of direction but doesn't enunciate the way to reach there.
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