Proposed budget : Prices of products that will be reduced

Finance Minister AHM Mustafa Kamal is presenting the budget for the fiscal year 2021-2022. This is his third budget as finance minister. The size of this year's budget has been proposed to be 6 lakh 3 thousand 681 crores. Of this, there is a deficit of Tk 2 lakh 14 thousand  681 crores.

Finance Minister AHM Mustafa Kamal began presenting the budget at 3 pm on Thursday (June 3).

Products with decreasing pricing

In this year's budget, some products have been exempted from VAT, import duty, advance tax, or supplementary duty. As a result, the prices of Covid-19 test kits, PPE and vaccines, fresh fruits, turnips, crockery products, hybrid cars can be reduced. It has been proposed in the budget to maintain Covid virus control, import of Covid-19 test kits, PPE, and vaccines, and to maintain VAT exemption at the commercial level.

In the proposed budget, VAT has been exempted from the production and trade of agricultural machinery such as weeders and weeders. In addition, advance tax exemption has been given for import of thresher machine, power reaper, power tiller, operated cider, combine harvester, rotary tiller, weeder, and weeder. As a result, the prices of these products may go down.

It has been proposed to reduce the existing value-added tax on paper cones used in spinning mills from 15 percent to 5 percent. VAT on fruits at the business level has been withdrawn. So the price of fruit may go down. Mudi VAT has been exempted at the production stage.

Tariffs on the import of microbuses have been reduced in CCV. So the price of microbus can go down. Supplementary duty on hybrid vehicles has been reduced. So the price of fuel-friendly cars can go down.

The 10 percent supplementary duty on the locally produced long pan has been withdrawn. At the same time VAT exemption on autism service activities has been given. All VAT applicable on locally produced sanitary napkins has been exempted. In addition, the existing VAT exemption for the import of certain raw materials for the production of sanitary napkins and diapers has been extended for two years.

In addition, local production of blenders, juicers, mixers, grinders, electric kettles, rice cookers, multi-cookers, and pressure cookers has been exempted from VAT. This can reduce the price of these products. Washing machines, microwave ovens, and electric ovens have been exempted from VAT. As a result, the prices of these products may also come down.

Speaker Dr. Prime Minister Sheikh Hasina is present in the session chaired by Shirin Sharmin Chowdhury. Among the ministers present are Liberation War Affairs Minister AKM Mozammel Haque, Road Transport and Bridges Minister Obaidul Quader, Agriculture Minister Dr. Abdur Razzak, Law Minister Anisul Haque, Planning Minister MA Mannan, Foreign Minister AK Abdul Momen, Information Minister Dr. Hasan Mahmud, and others.

The total deficit in the proposed budget is 2 lakh 14 thousand 681 crore taka. The total development expenditure is 2 lakh 37 thousand 78 crore taka. Of this, the size of the Annual Development Program (ADP) has been estimated at Tk 2 lakh 25 thousand 324 crores. The total non-development expenditure is 3 lakh 61 thousand 500 crores.