Staff Reporter :
There will be no change in excise duty on bank account proposed in the new budget because the people who keep Tk 1 lakh or above in banks are affluent enough in the society, Finance Minister AMA Muhith told a post-budget press conference on Friday.
Account holders with balance between Tk 1 lakh and Tk 10 lakh may count a Tk 800 excise duty a year.
“It is very difficult to give a definition of rich men. But I know the people who keep Tk 1 lakh or more in their bank accounts are capable of bearing the expenditure of the excise duty,” Muhith said. The press conference was held in the capital’s Osmani Memorial Auditorium.
Responding to a query, he said the price of rice has gone up recently due to the impact of the natural calamity.
“We will control the market through importing rice,” the Minister added.
When asked about the gas price, he said it will be costlier if dependence on imports of Liquefied Natural Gas (LNG) goes up.
On a query about 15 percent uniform VAT, the Finance Minister again claimed that the prices of
goods would not go up as 1043 products have been kept out of purview of the Value Added Tax.
“The owners of the businesses whose annual turnovers do not exceed Tk 36 lakh, as per the increase in the ceiling, will not have to pay VAT,” Muhith said, adding that the annual turnover of businesses has been increased from Tk 30 lakh to Tk 36 lakh.
“Threshold for registration under VAT has been increased from Tk 80 lakh to Tk 1.50 crore. In other words, businesses having a total yearly turnover up to Tk 1.50 crore will be able to avail themselves of the opportunity to pay only 4 percent tax on their turnover,” he said.
“This is a unique opportunity for the small entrepreneurs, which is not available in other countries in the world. In addition, several changes have been incorporated in the new act and rules to simplify the VAT collection procedures in accordance with the proposals from the business community,” he added.
Responding to another query on implementation of the proposed budget for FY18, Muhith said, “It is the best budget of my life. Raising questions about the implementation capacity of the administration is irrelevant and the administration which implemented over Tk 91 000 crore budget in 2009 has been implementing Tk 3, 17,174 crore budget for FY17”.
“Awami League’s vision and ideals have been reflected in the proposed budget but its main aim is to ensure welfare for all and we have tried to do it,” Muhith told another questioner.
Responding to another query, he claimed that the remittance inflow has not declined; rather there has been low rate of growth.
He also hinted that the government will subsidise the cost of sending inward remittance and it will be made effective from July. “It’s assumed that the inward remittance flow has slowed down. But, it’s not like that. Actually, the inward remittance flow has increased in other channels………in terms of growth, remittance is still growing and everybody should keep it in mind,” he said.
Muhith also ruled out the apprehension of increasing trend of load-shedding in the country as ‘baseless’, saying the power generation capacity will rise to 20,000 MW by 2018 and 24,000 MW by 2021.
About the interest rates of the savings certificates, he said the government has decided to review the rates at least once in a year. “We’ll soon make a decision. Because, the difference between the market interest rates and savings certificates should not be big and it must be reasonable. We’ll review the interest rates within the next two months.”
In reply to another question, the Finance Minister said he does not think there is plundering of fund in the private banks although there are some problems in one or two banks which there are trying to sort out.
Industries Minister Amir Hossain Amu, Agriculture Minister Begum Matia Chowdhury and Planning Minister AHM Mustafa Kamal also responded to questions from reporters from the dais while State Minister for Finance and Planning MA Mannan, Bangladesh Bank Governor M Fazle Kabir were, among others, present.
There will be no change in excise duty on bank account proposed in the new budget because the people who keep Tk 1 lakh or above in banks are affluent enough in the society, Finance Minister AMA Muhith told a post-budget press conference on Friday.
Account holders with balance between Tk 1 lakh and Tk 10 lakh may count a Tk 800 excise duty a year.
“It is very difficult to give a definition of rich men. But I know the people who keep Tk 1 lakh or more in their bank accounts are capable of bearing the expenditure of the excise duty,” Muhith said. The press conference was held in the capital’s Osmani Memorial Auditorium.
Responding to a query, he said the price of rice has gone up recently due to the impact of the natural calamity.
“We will control the market through importing rice,” the Minister added.
When asked about the gas price, he said it will be costlier if dependence on imports of Liquefied Natural Gas (LNG) goes up.
On a query about 15 percent uniform VAT, the Finance Minister again claimed that the prices of
goods would not go up as 1043 products have been kept out of purview of the Value Added Tax.
“The owners of the businesses whose annual turnovers do not exceed Tk 36 lakh, as per the increase in the ceiling, will not have to pay VAT,” Muhith said, adding that the annual turnover of businesses has been increased from Tk 30 lakh to Tk 36 lakh.
“Threshold for registration under VAT has been increased from Tk 80 lakh to Tk 1.50 crore. In other words, businesses having a total yearly turnover up to Tk 1.50 crore will be able to avail themselves of the opportunity to pay only 4 percent tax on their turnover,” he said.
“This is a unique opportunity for the small entrepreneurs, which is not available in other countries in the world. In addition, several changes have been incorporated in the new act and rules to simplify the VAT collection procedures in accordance with the proposals from the business community,” he added.
Responding to another query on implementation of the proposed budget for FY18, Muhith said, “It is the best budget of my life. Raising questions about the implementation capacity of the administration is irrelevant and the administration which implemented over Tk 91 000 crore budget in 2009 has been implementing Tk 3, 17,174 crore budget for FY17”.
“Awami League’s vision and ideals have been reflected in the proposed budget but its main aim is to ensure welfare for all and we have tried to do it,” Muhith told another questioner.
Responding to another query, he claimed that the remittance inflow has not declined; rather there has been low rate of growth.
He also hinted that the government will subsidise the cost of sending inward remittance and it will be made effective from July. “It’s assumed that the inward remittance flow has slowed down. But, it’s not like that. Actually, the inward remittance flow has increased in other channels………in terms of growth, remittance is still growing and everybody should keep it in mind,” he said.
Muhith also ruled out the apprehension of increasing trend of load-shedding in the country as ‘baseless’, saying the power generation capacity will rise to 20,000 MW by 2018 and 24,000 MW by 2021.
About the interest rates of the savings certificates, he said the government has decided to review the rates at least once in a year. “We’ll soon make a decision. Because, the difference between the market interest rates and savings certificates should not be big and it must be reasonable. We’ll review the interest rates within the next two months.”
In reply to another question, the Finance Minister said he does not think there is plundering of fund in the private banks although there are some problems in one or two banks which there are trying to sort out.
Industries Minister Amir Hossain Amu, Agriculture Minister Begum Matia Chowdhury and Planning Minister AHM Mustafa Kamal also responded to questions from reporters from the dais while State Minister for Finance and Planning MA Mannan, Bangladesh Bank Governor M Fazle Kabir were, among others, present.
