analysis of bangladesh national budget- 2016
TRANSCRIPT
Public FinanceAnalyze Addition & Recommendation of National Budget 2015-16
Presented byAbdul Motaleb Roll- 1126Department of Finance
New AdditionsNational Budget 2015-16
Public Finance
Foreign nationals to be brought under tax netThe government will soon bring foreign nationals working in Bangladesh under the tax net apart from imposing penalty on those employing un-authorized foreign nationals
Public Finance
Advantages Generate national
revenue Filling saving gap Foreign-Exchange gap Filling revenue gap Filling management
gap
Disadvantages If foreign national
workings are under tax they are demotivated to came Bangladesh.
We will not able to get knowledge which we don’t have
Loss multicultural working environment
Increase illegal entry of foreign employee
Public Finance
Tax on mobile SIM Card Users With a view to ensuring the continued development of this mobile sector, making the IT service easily attainable through mobile phone and thus ensuring sustainable or equitable growth for this sector, it is proposed to levy Tk. 100 as SIM tax for both the instances of issuance and replacement of mobile SIM card.”
Public Finance
Difficult to achieve vision 2021
Because- Majority people use SIM for communication and
information General user use internet through SIM card by
smart phone Without internet use can’t think digitalized the
system
Public Finance
Budget proposes to levy VAT on private universities, medical and engineering colleges.
It will generate more cost on higher education Guardian may not able take the extra cost of their
children Guardian demotivate to send their children to get
higher degree It will long term impact national resource
Public Finance
Bangladesh sets to cut subsidy by 5.5% in coming budget Long term barriers on agriculture
development People will not get proper health service Education industry get ling term impact
such as- Girls are demotivated if they don’t get
any support from govt. Parents will not allow their children to go
school for avoiding bear extra cost
Public Finance
Rural areas to come under black money whitening scheme People living in municipality and district headquarters will be able to whiten undisclosed money by purchasing residential apartments in these areas, as the Finance Bill 2015 cuts specific tax on such purchases.
For this, people buying apartments with untaxed money will have to pay Tk600 as tax per square meter of the apartment area, says the finance bill. Under the existing arrangements, the tax per square meter is Tk1,000
Public Finance
Advantages Generate revenue Real estate
business has emerged
Cheap apartment cost
Disadvantages Blacker may not
interested to take the advantage to white money scheme
Public Finance
To give loans to people of third gender to help them do business
Bangladesh’s central bank has instructed all banks and financial institutions to give loans to people of third gender to help them run small and medium businesses.
Public Finance
Public Finance
RecommendationsNational Budget 2015-16
Public Finance
Allocation on the educational sector should be revised; this will help us invent more efficient techniques in every sector which will make Vision 2021 easily achievable.
In the budget FY15-16 it was demand of time to allocate a special expenditure for reducing unrest situation of hilly places of Bangladesh, which should actually aim at raising their living standard & making them to mix up with mainstream people.
For capturing the huge worldwide outsourcing market, at
least 64 outsourcing hub should be made in total locating each hub in each district along with 100 computers plus broadband internet connections respectively, which will help to attain the goals of ‘Digital Bangladesh’.
Public Finance
It is high time to make the Stock Market stable. To do so, a new institution named Stock Market Rehabilitation should be officially structured for pressurizing the present & upcoming foreign entrepreneurs & companies to put at least 10% share of their respective companies within a year at Bangladesh share market.
New kind of taxes such that ‘Coal Import Tax’ & ‘Carbon Tax’ should be introduced, by which we can buy coal from international market to meet our increasing demand for energy production & allocation.
‘Carbon Tax’ should be imposed primarily at lower rate on
the all companies which leave carbon gas in nature. This will help us step by step, recovering our polluted nature by creating planned forestation in every city & industrial area.
Public Finance
For collecting the income tax properly, finding out the eligible people by endowing job seekers for a short period, National Board of Revenue can earn more than its estimated earnings.
Last one is can be modified by my suggestion-
Focus resources on improved auditing, processes, and tools
Use simple segmentation to identify larger collection opportunities
Ensure regular updates to the taxpayer registry Use electronic channels for simple transactions Simplify the tax system to encourage formalization
Public Finance
Another recommendation we can add Tax should be imposed VIP road user Reward on tax pay system to motivate eligible
people who do not give tax Impose tax on domestic flight
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