The government is set to withdraw a 5 per cent advance tax on the import of gold in the fiscal year of 2022-23 to encourage the import of the precious metal through formal channels and discourage smuggling.
The government is going to increase the subsidy by big margin for fertilisers in the next fiscal year (2022-23) due to the sharp rise in its price in the global markets.
The government has proposed a uniform tax rate on the earnings of the services export and goods with a view to encouraging diversification of export goods and ensuring a level-playing field for all other sectors exporting goods and services.
Finance Minister AHM Mustafa Kamal sees six major challenges for the fiscal year 2022-23:
The additional 1 per cent cash incentive on the export receipts of readymade garments would continue in the next fiscal year as the government looks to boost the shipment of clothing items.
The government has set a 5.6 per cent inflation target in the proposed budget for the 2022-23 fiscal year although the prices of essentials and other commodities are persisting at higher levels.
The government has no plans to inject capital into state-run banks as it has already taken several initiatives to put an end to this culture, Finance Minister AHM Mustafa Kamal said today.
The government proposed increasing the source tax on export proceeds to 1 per cent from the existing 0.5 per cent in the next fiscal year.