Prime Minister Sheikh Hasina has urged Finance Minister AMA Muhith to revise the budget proposal lowering source tax on all exports including RMG products from 1 to 0.6 percent.
Published : 29 Jun 2015, 03:47 PM
At the same time, she also urged cutting the value added tax on higher education to 7.5 percent from the proposed 10 percent.
During the budget discussion session on Monday, she also suggested some other revisions in the budget proposals were necessary.
In the outgoing fiscal ending on June 30, 0.3 percent tax at source was cut for RMG exports and 0.6 percent for others.
The budget proposal placed on June 4 by the finance minister levied a 1 percent tax at source on all exports including readymade apparels.
The prime minister called for cutting the tax by 0.4 percentage points and told Muhith, “Please give the scope this year, you can increase it later if business is good.”
Until now, a 7.5 percent VAT was applicable for English medium schools, while private universities, medical colleges and engineering colleges did not have any VAT on them. The budget proposed imposed a 10 percent VAT on them.
However, the BNP and some ruling party leaders criticised the move and urged for its withdrawal.
The prime minister on Monday urged the finance minister to cut it down to 7.5 percent.
Hasina also called for taking steps to increase research on utilisation of marine resources.
She urged withdrawal of all taxes on raw materials for cancer medications and exemption on Hepatitis C preventives and raw materials for herbal medicine.
The prime minister also pointed out that the poultry and fisheries sector were working to meet nutritional needs of the nation.
“The finance minister has proposed to tax income from the poultry industry. I will urge him to keep it tax-free until Tk 1 million. Five percent tax could be deduced on incomes ranging from Tk 2-3 million and 10 percent on incomes above that.”
She also urged Muhith to treat the fisheries sector in the same manner.
The finance minister had proposed 3 percent tax on income from poultry sector up to Tk 1 million, 10 percent on income from Tk 1-2 million and 15 percent on income above Tk 2 million.
The fisheries sector earnings were to be taxed similarly.