Welcome To Our

Presentation..

Heartiest gratitude for

Taher Jamil
Lecturer
Department of Finance
Faculty of Business Studies
University of Dhaka

A team performance
by.

Mobassira Fabiha
Haque
20-024
Mohammad Atikur
Rahman
20-100
Al - Faysal Bin
Amin Tasik
20-168

M.Q.M. Siddiqui
Proshun
20-202
Parbon Acharjee
20-212

Pre-Budget Discussion
and its Reflection in

National Budget
2015-2016

objective of the Presentation.

Comparing the PreBudget Discussions

and their
Implementations.

Now Presenting.

Mobassira Fabiha
Haque
20-024

Discussion with PRI

1. Tax receipts collected by the National Board of Revenue
heads
will rise to around Tk 9.0 billion once the government goes
back to its previous rate at 0.8%.
2. Finance Minister said that currently the prices of 25 nonfilter and 20 filter bidis were Tk6.14 and Tk6.92
respectively, and, because of their low prices, most tobacco
users smoked this product and became vulnerable to health
risks.
3. He also proposed for increasing the corporation tax on
publicly-traded tobacco companies from 40% to 45%.
4. Spending more on health, education and social sectors as
share of GDP, alongside suggesting a clear statement of
expenditure reforms for the 7th five-year plan.

Implementation in Budget( Tobacco and

health, education sector)

Currently the price of 25 sticks of non-filter and 20 sticks of filter bidi stands at
Tk. 6.14 and Tk. 6.92 respectively. And the minister declared it to be Tk. 7.06
and Tk. 7.98 respectively from now on.
The finance minister declared a uniform tax rate of 45% for all cigarette
manufacturing entities viz. private limited, public limited or publicly traded
company and for taxpayers including individual and partnership firm etc.
The budgetary allocation for education and technology declined by 1.5% point
and proposed at 11.6% of the total budget outlay in the FY 2015-16 compared to
13.1% in the FY 2014-15.
Allocation for health also declined by 0.1% point from 4.4% of the total budget in
the FY 2014-15 to 4.3% in the FY 2015-16.

Meeting between Finance

Minister and BIDS Heads
A large amount of revenues arrival can be
ensured if the existing tax at source on
export receipts is fixed at 0.8% from the
existing 0.3%.
The capacity for implementing donor-funded
project still remained low in spite of
increasing much. Relating with the fact
Finance Minister dragged the topic of aid
lying in the pipeline being more than worth
US$20 billion whereas we can use just more
than $4.0 billion a year.

Discussion between Finance

Minister and BIA officials
They demanded is for cutting the tax
rate to 15% in the next budget
They also demanded withdrawal of
existing 5% gain tax on the profit of
their deposits
The BIA leaders also demanded to refix the tax rate similar to the tax free
income ceiling for individual
taxpayers at Tk 220,000.

Meeting among Finance Minister

and FBCCI Officials
Local farmers are not getting fair prices in terms of
their production because of oversupply; but a lot of
rice is being imported.
The GDP growth to be the highest in the tenure of his
government, which has been ruling the country since
2009 as per Mr. Muhith. And the government is
hoping to move out of the 6% growth regime next
fiscal year.
The country has been unable to raise the GDP growth
rate to 7 to 8% because of low investment, high bank
interest rates and shortages of gas, power and land
for industries.

Now Presenting

Parbon Acharjee
20-212

MEETING WITH MCCI.

Metropolitan Chamber of Commerce and Industry (MCCI), a powerful trade body voiced the business community's urge for the government to frame an appropriate responsive
budget for the fiscal year (FY) 2015-16 to help them recoup the losses they have suffered due to the ongoing political violence.

The MCCI President, Mr.

Manzurs proposal
includes:
Increasing the limit of taxfree ceiling for individual
taxpayers;

The MCCI President, Mr.

Manzurs proposal
includes:
Increasing the limit of taxfree ceiling for individual
taxpayers;
Setting the maximum tax
rate at 25% by trimming it
from the existing 30%, and;

The MCCI President, Mr.

Manzurs proposal
includes:
Increasing the limit of taxfree ceiling for individual
taxpayers;
Setting the maximum tax
rate at 25% by trimming it
from the existing 30%, and;
Cut in advance income tax by
2.0%.

President of BWCCI Selima Ahmad sought for

Recognition for women
taxpayers;

President of BWCCI Selima Ahmad sought for

Recognition for women taxpayers;
Cut in VAT on imparting training to
women entrepreneurs;

President of BWCCI Selima Ahmad sought for

Recognition for women taxpayers;
Cut in VAT on imparting training to
women entrepreneurs;
Raise in tax-free limit for individual
women entrepreneurs to Tk 350,000;

President of BWCCI Selima Ahmad sought for

Recognition for women taxpayers;
Cut in VAT on imparting training to
women entrepreneurs;
Raise in tax-free limit for individual
women entrepreneurs to Tk 350,000;
Allow them to carry products worth
minimum Tk 500,000 to international
trade fairs etc.;

President of BWCCI Selima Ahmad sought for

Recognition for women taxpayers;
Cut in VAT on imparting training to
women entrepreneurs;
Raise in tax-free limit for individual
women entrepreneurs to Tk 350,000;
Allow them to carry products worth
minimum Tk 500,000 to international
trade fairs etc.;
A flat rate of 4.0% VAT for all
women entrepreneurs.

On Energy
The government has said in the
proposed budget for 2015-2016 that it
needs to finalize programs within 2015
for the installation of power plants in the
country, making
the plants.

coal the prime fuel for

The government targets to secure

distribution of 80% of generated power
to the customers by 2018. The
government's vision statement for
2021 targets electricity for all which
will require installation of additional
10,000km transmission and
1,50,000km distribution lines in the

On Apparel Sector
Deduction of 0.3% source tax on CM
against FoB and 10 income tax till
2019.

On Apparel Sector
Deduction of 0.3% source tax on CM
against FoB and 10 income tax till
2019.
Continuation of the 0.30% source tax
till next 5 years and 10% income tax
till 2019.

On Apparel Sector
Deduction of 0.3% source tax on CM
against FoB and 10 income tax till
2019.
Continuation of the 0.30% source tax
till next 5 years and 10% income tax
till 2019.
Increasing the cash support to 8.0%.

On Apparel Sector
Deduction of 0.3% source tax on CM
against FoB and 10 income tax till
2019.
Continuation of the 0.30% source tax
till next 5 years and 10% income tax
till 2019.
Increasing the cash support to 8.0%.
Duty- free import of fire proof color
coating for pre-fabricated building
materials and other energy saving
equipment like LED bulb and tube light
to help ensure a safe and environment-

On Apparel Sector
Deduction of 0.3% source tax on CM
against FoB and 10 income tax till
2019.
Continuation of the 0.30% source tax
till next 5 years and 10% income tax
till 2019.
Increasing the cash support to 8.0%.
Duty- free import of fire proof color
coating for pre-fabricated building
materials and other energy saving
equipment like LED bulb and tube light
to help ensure a safe and environment-

But in the budget

The finance minister proposed increasing source tax to 1.0% for
the next fiscal year (FY) 2015-16.
After paying all taxes, a factory's profit margin lies between
2 % and 3% if there is no obstacle like political turmoil
whereas tax at source has been fixed at 1%.
A factory, on an average, needs to pay Tk 50 million to
meet structural, fire and electrical safety requirements in line
with the requirements of Accord and Alliance.
If the government refixes source tax at 0.30% , they promise that
they will create more employment scopes and help Bangladesh
achieve a middle income country
He, however, criticized the proposal to impose 1% duty on
import of capital machinery for the apparel industry, saying
that it would discourage expansion and diversification and slow

Now Presenting.

Al-Faysal Bin
Amin Tasik
20-168

REHAB sector
Demands placed before Chairman of National
Board of Revenue (NBR) at a pre-budget
meeting on 2nd April,2015 include:
Allowing investors to invest their Undisclosed
money earned Legally in the housing sector.
Slashing gain tax, stamp fee and VAT by 50%.
Halving taxes payable by the developers
according to the provision of Income Tax
Ordinance section 1984/53 FF.
Re-fixation of taxes against the lands outside of
the RAJUK and CDA areas from the 4% and 3%
to 2% and 1%.

But in the Budget.

In the Budget presented by Honorable Finance Minister
AMA Muhith for the FY 2015-2016, for building construction
sector, instead of the existing VAT rate of 3%, imposition
of VAT at the rate of 1.5% for flats having floor space up to
1100 sq. feet, at the rate of 2.5% for flats having floor
space between 1101 sq. feet and 1600 sq. feet, and at
the rate of 4.5% for flats having floor space of more than
1600 sq. feet is allocated.

Hybrid Car Sector

If the import duty is reduced then it would also
reduce pressure on fuel and energy, especially gas,
which could be used for the industrial production.

Setting depreciation facilities at 25% for one-year

old reconditioned cars, 35% for two-year old, 45%
for three-year old, 50% for five-year old and 55%
for more than five-year old cars.
Withdrawal of the 30% supplementary tax on microbus imports
As the revenue collection target in this years budget
is indeed ambitious and since it is 30.62% higher
than that of the current financial year (2014-15), no
reduction of import duty on hybrid cars are
considered.

Tea sector
Tea sector:

Bangladesh Cha Sangsad proposed imposing a higher import duty on tea imports for the sake of local producers before the Chairman of NBR on 2 nd April, 2015.
President of Bangladesh Cha Sangsad Ardashir Kabir said that the production of tea is increased by 187% to 200% and if the import of tea is allowed at a lower duty then it would make it difficult for the sector to survive.
**This years budget agreed to their proposal. To protect the fair interest of our local tea growers, our Honorable Finance minister AMA Muhith proposes to increase the supplementary duty on tea imports from 15% to 20%.

Now Presenting.

M.Q.M. Siddiqui
Proshun
20-202

Discussion between BSOA and

NBR
Due to political uncertainties Number of
Supermarkets has gone down from 105
to 96.
Supermarket owners pay 70% more tax
tan those by the departmental stores.
2% VAT is applicable for superstores
where Departmental stores enjoy VAT in
package rate ranging from Tk. 3000 to
Tk. 12000.
Asked NBR to reduce duties on Capital
machines like Refrigerator, Electronic
shelves etc.

Discussion between Bcwma and

NBR..

A meeting held on 22nd April BCWMA

demanded:
Complete removal of the
Supplementary Duty on locally made
ceramic tiles
Reduction of 15% VAT and 15% SD
on local manufacturing of tiles.
Requested NBR to completely
withdraw any Regulatory Duty and
Supplementary Duty from essential
machinery and parts.

Discussion between AMTOB and

NBR..
Requested NBR to eliminate the fix tax of tk. 300
on SIM cards.

They called for a uniform tax rate of 30% for the

listed operators and 35% for the non-listed
operators.

Urged to reduce tax on internet modem import

and demanded 15% VAT over mobile internet
service.

They also demanded a harmonize customs duty

Discussion between ICT and Finance Minister

In a meeting on 12th April the ICT sector
demanded the following to the Finance
Minister:

withdrawal of VAT from all sorts of ecommerce products for 3-5 years
withdrawal of 4.5% VAT from the ICT
sector
demanded on imposing high amount
of tax on imported operating system.
they have sought over Tk2,237 crore
for building a digital Bangladesh by

Now Presenting.

Mohammad Atikur
Rahman
20-100

Discussion between DCCI and

NBR..
DCCI has urged the NBR to raise the tax free limit of the
wealth surcharge at Tk 4 crore from the existing Tk 2
crore from the upcoming budget.
The DCCI has requested NBR to reduce the corporate tax
rate for the merchant banks from existing 37.5% to 35%,
listed companies from 37.5% to 35%, and for brokerage
operations at 30% from the existing 35%.
For the individual taxpayers, the chamber recommended the
tax-free income limit at Tk 2.75 lakh from existing Tk 2.20
lakh while it has advised the board to finalize the limit for
women and elderly persons from Tk 2.75 lakh to Tk4 lakh
for physically disabled persons from Tk 3.5 lakh to Tk4

Exporters except RMG

The leaders of business association made
some appeals at a pre-budget discussion with
NBR chairman Md Nojibur Rahman:
They claim .30% tax at source for all
export sectors.
Demanded withdrawal of 5% tax on cash
incentive provided by the government to
boost exports.
As frozen foods are 100% agro-based
products having no relation with import,
but the sector have to pay .60% tax at
source over export value while RMG sector
pay .30% tax.so they want the equality in
all sectors.
Bangladesh Textile Mills Association (BTMA)
President Tapan Choudhury urged the
government to allow duty-free import of

Foreign investors
They urged NBR to reduce corporate tax at 30% from the existing
35% for non-publicly traded company, and the rate for Mobile phone
operator (non-listed) should be reduced at 32.5% from the existing
45%.
Ms.Rupali managing director of Berger Paints Limited proposed to
withdraw supplementary duty for local companies from the upcoming
budget which will be come into effect from 2016.
Reduction of advance income tax to 2% from 5% for industrial
companies and cancellation of tax deduction not admissible for excess
prerequisites, normal depreciation rate at 50% to be allowed for any
software.
Cancellation of the provision for making companies liable to pay
minimum .30% on gross receipts.

Tourism sector
Tour Operators association of Bangladesh (TOAB)
president Dr Akbar Uddin Ahmed urged the NBR to
make the import of tourist buses duty-free.
TOAB president also sought seven-year tax holiday
for the sector.
Khabiruddin Ahmed of Tourism Resort Industries
Association of Bangladesh (TRIAB) demanded the NBR
exempt VAT and provide duty-waiver for the resort in
rural areas for next few years.
He also demanded resorts in rural areas should be
kept out of income tax net for the two years to

Implementation in budget
In the National Budget for 2015-16, the civil aviation and
tourism sector has received an allocation of Tk 372
crore against total budget size of Tk 2,95,100 crore.
The allocation of Tk 372 crore is Tk 225 crore more
than the revised budget of 2014-15 fiscal year that was
Tk 147 crore.
Of the total Tk 372 crore, Tk 329 crore is proposed to
be spent under the Annual Development Programme
(ADP) and Tk 43 crore under non-development sector.

Any
query?

Thank
You!