Products that are declining in the budget
Finance Minister AHM Mustafa Kamal has presented the budget for the fiscal year 2020-21 under the title 'Economic Transition and Future Roadmap'. This is the second budget of the current government and the 49th budget of the country.
In this budget raised by AHM Mustafa Kamal for the second time as the Finance Minister, income tax at source has been reduced for the supply of essential commodities like rice, flour, potato, onion, garlic at the local level. Besides, advance income tax on imported sugar and garlic has been reduced. As a result, the prices of these essential commodities will go down.
Highlighting the proposed budget, the finance minister said, "I am proposing to reduce the rate of income tax deduction on certain products, including essential commodities, to alleviate the current capital deficit in the hands of traders and rationalize the tax at source in view of the situation caused by the epidemic coronavirus."
"At present, the maximum rate of withholding income tax is 5 per cent for the supply of essential commodities such as rice, flour, potatoes, onions, garlic, etc. at the local level, which I am proposing to fix at 2 per cent irrespective of the base price."
‘Currently the maximum rate of withholding income tax on supply of locally collected MS scape is 5 per cent. In view of the financial viability of small traders supplying MS Scape locally and for the development of the iron ore manufacturing industry, I propose to fix the rate of income tax deduction at source on the supply of locally collected MS Scape excluding the base price.
At present, 5 per cent advance income tax is collected on garlic and sugar imports. I am proposing to reduce this rate from 5 per cent to 2 per cent, ”said Finance Minister AHM Mustafa Kamal.
‘In addition, 5 per cent advance income tax is currently levied on the import of raw materials used for poultry feed production. In order to develop the poultry industry, I am proposing this advance income tax of 2 per cent instead of 5 per cent.