1. BANGLADESH ARMY INTERNATIONAL
UNIVERSITY of SCIENCE and TECHNOLOGY
Cumilla Cantonment, Cumilla.
Department of Business Administration
Level
Course Title : Corporate Taxation
Kazi Sadia Hasin,
Lecturer of Accounting,
DBA, BAIUS.
Assignment Topic:
Submitted to;
Submission Date:
BANGLADESH ARMY INTERNATIONAL
UNIVERSITY of SCIENCE and TECHNOLOGY
Cumilla Cantonment, Cumilla.
Department of Business Administration
Level-4 Term-1
Course Code: ACC4707
Course Title : Corporate Taxation
Sakea Sultana
ID: 4104003
Deparment of
Accounting
Assignment Topic: A Review on Bangladesh National
Budget of 2020-2021.
Submitted
Submission Date: 08-08-2020
BANGLADESH ARMY INTERNATIONAL
UNIVERSITY of SCIENCE and TECHNOLOGY
Sultana
ID: 4104003
Deparment of
Accounting
Review on Bangladesh National
Submitted by:

2. Finance Minister AHM Mustafa Kamal is going to present his second and the country's 49th
budget in the Parliament. The finance minister will present the budget on the second day of
the 8th session of the 11th parliament, chaired by the Speaker Dr. Shirin Sharmin
Chowdhury.
Size of the budget:
The finance minister announced a budget of more than Tk 568,000 crore for the fiscal year
2020-2021. The title of the budget speech is ''Economic Transition and Future Pathway''. The
proposed budget for the fiscal year 2020-2021 is 13.24 percent i.e. Tk 66,423 crore higher
than the revised budget of the current financial year.
Proposed expenditure:
Among the operating expenses, the government has incurred a cost of Tk 3, 48,180 crore in
this budget. Tk 58,253 crore is being kept for the interest recovery on internal loans. Tk 5548
crore is being allocated for the interest recovery on external loans. Tk 36,990 crore is being
allocated as capital expenditure for management of assets, land acquisition, structure and
construction work, investment in shares and equity, etc. The cost of food has been shown to
be Tk 567 crore. And Tk 4,210 crore is allocated for loans and advances (net) in government
institutions.
On the other hand, Tk 215,043 crore is allocated for development expenditure. Of this, Tk
205,145 crore for the Annual Development Program (ADP). Tk 4,722 crore for special
projects outside ADP. Tk 2,522 crore is allocated for development programs and schemes
funded from own sources. Besides, Tk 2,654 crore is allocated for Food for Work program
projects out of ADP.
Budget Income Proposal:
The main source of income in the budget is revenue collection. The budget has set a target of
Tk 378,003 crore. Besides, the government will get a foreign grant of Tk 4,013 crore in this
financial year. In all, the government's income will be Tk 382,0018 crore. The National
Board of Revenue (NBR) will raise the revenue of Tk 330,000 crore. The revenue target from
non-NBR taxes has been set at Tk 15,000 crore. Besides, the revenue target excluding taxes
has been set at Tk 33,000 crore.
Budget deficit:
The total budget deficit has been set at 5.8 percent of GDP i.e. Tk 185,984 crore, which was 5
percent earlier. To fill the gap, the government wants to borrow Tk 80,017 crore from foreign
net loans, besides setting a target of borrowing Tk 1,09,980 crore from domestic sources
including Tk 84,980 crore from banks, Tk 20,000 crore from savings and Tk 5,000 crore
from other sectors.

3. Rebates to increase investment:
Declining corporate taxes
To attract investment, a corporate tax is going to be reduced after 5 years. In the budget of the
new financial year, the corporate tax is being reduced from 35 percent to 32.5 percent.
However, the corporate tax rates for listed companies, banks, insurance companies, mobile
operators, and cigarette manufacturers will remain unchanged. In the last, in the 2014-15
financial years, the corporate tax was reduced at 2.5 percent to 35 percent.
Turnover taxes decreased
Turnover taxes have been proposed to decrease in the budget to facilitate small and medium-
sized businesses. It is being reduced from 4 percent to 3 percent. The VAT exemption limit is
the same as before at Tk 50 lakh and the upper limit of turnover is Tk 3 crore.
Increasing tax- free income limit
The tax-free income limit for individuals is being increased from Tk 2.5 lakh to Tk 3 lakh.
The exemption limit for women, disabled and gazette freedom fighters is also increasing at a
proportional rate. The maximum tax rate for individuals is being reduced from 30 percent to
25 percent. This will reduce the tax burden. However, the minimum tax rate remains
unchanged.
Tax leave coverage is increasing
Tax leave benefits are being given to new industries in the budget. This time, the facility is
provided to Artificial Fiber Production, Nanotechnology-Based Products, Artificial
Intelligence, Automobile Parts, Robotic Design and Manufacturing, Electrical Transformer
Production, Aircraft Maintenance, and Services. Earlier, tax leave was given to 26 industries.
 Let me now offer some comments on some specific aspects of the national budget to
be prepared for 2020-21.
(a) Health
The health sector has been monotonously receiving less than one percent of GDP, annually,
year after year. The novel corona virus must have given the most telling argument for the
health sector to receive top priority in resource allocations. In fact, the Prime Minister has
rightly identified it as such. In this regard, there is the immediate need to save lives through
testing for Covid-19, isolating at homes or in hospitals, quarantining at home or in
institutions, hospitalization including in ICUs, supply of PPE, the availability of doctors,
nurses and other caregivers, etc. This requirement is highly likely to continue into the next
fiscal year and there may be a second Covid-19 wave or more waves after the current wave.

4. (b) Education
The critical importance of education is recognized by everybody, but budgetary allocation
has been having around just over two percent of GDP for years on end. I suggest that this
forthcoming budget makes a noteworthy beginning along this road, followed up by proper
and upright implementation.
(c) Mobilization of youth power
There are instances of youth doing so on their own. The PKSF has, over the past several
years, mobilized over 150,000 young people in 202 unions across the country. Most of them
have been given an elaborate digital training on human and social values. Most of those
found jobs or have set up micro enterprises. Many of those young people are now in action,
facilitated by the PKSF and its partners, to help alleviate the miserable conditions of people
devastated in the wake of Covid-19.
(d) Agriculture
There are additional adverse things to be considered, which the setbacks are caused by
Covid-19 in terms of sharply-reduced financial abilities of the farmers and the disruption of
supply chains. The rice production this year is good hopefully the harvesting of Boro paddy
will be successfully completed and the government has announced increased procurement of
rice as a price support measure for the farmers.
Poultry and egg producers have suffered severely and so have the milk producers. Also,
flowers, tomato and watermelon have taken hard hits due to demand and transportation
problems. These and similar other instances should be duly considered, in addition to the
usual arguments, while setting total allocations to the agriculture sector to be provided under
different heads such as: subsidies, loans, and non-financial services like training and
extension.