Economy
Proposed Budget Slashes Import Duties on Key Consumer Goods
Finance Minister Abul Hasan Mahmood Ali has presented a proposed national budget of Tk 797,000 crore for the fiscal year 2024-25. This new budget introduces reduced import duties on several goods, leading to lower prices for these items.
The budget was unveiled at a parliamentary session on Thursday (June 6) at 3 pm, presided over by Speaker Shirin Sharmin Chaudhury and attended by Prime Minister Sheikh Hasina.
This marks the first budget for the current government’s fourth consecutive term and the 21st budget under Prime Minister Sheikh Hasina’s leadership. It is also Finance Minister Abul Hasan Mahmood Ali’s first budget presentation.
Goods Expected to See Price Reductions
The proposed budget includes the removal of a 20% supplementary duty on the import of packaged powdered milk, which is expected to decrease its market price. Additionally, a 25% reduction in the duty on chocolate imports will lower chocolate prices. VAT on laptop imports has been removed, decreasing the overall tax from 31% to 20.5%, which will reduce laptop prices.
The import duty on polypropylene yarn, a key raw material for carpet manufacturing, has been cut from 10% to 5%, reducing the price of locally produced carpets. The aviation sector will benefit from reduced VAT on engine and propeller imports, leading to lower maintenance costs for aircraft. Import duties on CKD parts for locally manufactured motorcycles have been reduced, which will lower motorcycle prices in the domestic market.
The import duty on manganese, used in the production of rods, bars, and angles, has been reduced from 10% to 5%, decreasing the cost of metal products. Prices for switches and sockets used in households are expected to drop due to reduced import duties on raw materials for their production. Concessions on parts for electric motor production will also result in lower prices for electric motors.
The budget reduces import duties on raw materials for dialysis filters, decreasing the cost of dialysis. Additionally, a 9% reduction in import duties on circuits will lower dialysis expenses. The prices of spinal syringes and dengue kits will also drop due to preferential import duty concessions.
Budget Overview
The budget theme is “Commitment to Building a Happy, Prosperous, Developed, and Smart Bangladesh.” The proposed budget size for FY 2024-25 is Tk 797,000 crore, a 4.6% increase from the current budget.
The current budget for FY 2023-24 was set at Tk 761,785 crore. The upcoming budget proposes an Annual Development Programme (ADP) of Tk 265,000 crore, compared to Tk 263,000 crore for the current fiscal year.
The overall budget deficit is projected at Tk 256,000 crore, a decrease from the revised deficit of Tk 283,785 crore for the current fiscal year. The target for total revenue is set at Tk 545,400 crore, up from Tk 500,000 crore in the previous year.
For FY 2024-25, the GDP growth target is set at 6.75%, potentially reaching Tk 55,97,414 crore. The current fiscal year’s GDP growth target was 7.5%, later adjusted to 6.5%. The proposed budget aims to keep inflation at 6.5%.
Expatriate Bangladeshis sent approximately US$ 2.11 billion in remittances during the first 28 days of September in the fiscal year 2024-25, according to data released by Bangladesh Bank on 29 September.
Of this total, state-owned and specialised banks handled $679.10 million, while private banks received $1.43 billion in remittances.
Chief Adviser to Bangladesh’s interim government, Professor Muhammad Yunus, has vowed to expedite reforms and hold elections swiftly. Yunus, who recently assumed the role after the collapse of Prime Minister Sheikh Hasina’s 15-year administration, expressed his commitment during an interview with Tokyo-based news outlet NHK WORLD in New York on Sunday. He was attending the United Nations General Assembly at the time.
Following mass student-led protests that ended Hasina’s long-standing rule in August, Yunus stepped in as the leader of the caretaker government. Known for founding Grameen Bank, an institution providing microloans to the underprivileged, Yunus, along with the bank, earned the Nobel Peace Prize in 2006 for his efforts in poverty alleviation.
During the interview, Yunus emphasized that the interim government’s primary mission is to implement reforms promptly and ensure elections are held as soon as the groundwork is complete. He underscored the importance of success, stating, “Failure is not something that we can accept.”
Addressing the pivotal role of students in the ousting of the Hasina administration, Yunus acknowledged the sacrifices made by young people, referring to their involvement as part of a “revolution.” He highlighted his intention to engage the younger generation in shaping policy.
Furthermore, Yunus called for continued support from Japan, Bangladesh’s largest donor, during this crucial transition period. He stressed that Japan’s assistance is vital to stabilizing Bangladesh’s economy and fostering a democratic foundation in the nation.
Syeda Rizwana Hasan, the Adviser for Environment, Forests, and Climate Change, announced today that steps will be taken to restrict the use of polythene shopping bags to safeguard future generations.
Starting from October 1, polythene bags will be banned in shopping malls, followed by a ban in kitchen markets from November 1.
“Everyone must take responsibility and stop using polythene voluntarily. Action against polythene producers will begin from November 1,” Rizwana Hasan stated during a seminar.
The Department of Environment (DoE) organized the seminar to raise public awareness about alternatives to banned polythene bags.
Rizwana Hasan highlighted that the restriction on polythene will be executed in phases according to legal provisions, and discussions with shopping centers and store owners are ongoing to ensure a smooth transition.
She also announced plans to make the government secretariat a plastic-free zone by December.
Other speakers at the seminar included Environment Secretary Dr. Farhina Ahmed, DoE Director General Dr. Abdul Hamid, Director Rajinara Begum, President of the Shop Owners Association Muhammad Helal Uddin, and Md. Arifur Rahman Bhuiyan, Assistant Professor of Environmental Science at BUP. They discussed the harmful effects of polythene and the need for alternative products.
Earlier, Rizwana Hasan inaugurated a fair showcasing eco-friendly alternatives to polythene bags and visited 24 stalls. The fair featured products from government and private entrepreneurs, including reusable bags, jute bags, paper bags, and items made from bamboo and cane.
