GDP growth target set at 6.75% for FY25

The government is optimistic that the country’s GDP growth will be 6.75% for fiscal year 2024-25, nearly one percentage point higher than the outgoing year. This projection comes despite a contractionary monetary budget, with an eye towards taming inflation. Recently, the Bangladesh Bureau of Statistics projected that GDP will grow at 5.82% for the current fiscal year, down from the 7.5% projected in the budget. But after a review, the finance ministry lowered the target to 6.5%. With an eye towards battling inflation, Finance Minister Abul Hassan Mahmood Ali unveiled a TkTk 7,97,000 crore national budget for the fiscal year 2024-25. The latest budget is contractionary, with a lowered GDP growth of 6.9%. Usually, the size of a new budget increases by 10% to 12% compared to the current year’s budget, but this time it will increase by less than 8%.

Source: https://www.tbsnews.net/economy/budget/gdp-growth-target-set-675-fy25-870371

Tax free income ceiling remains at Tk3.5 lakh

The government has retained the tax-free income limit at Tk3.5 lakh for individual taxpayers for the fiscal year (FY25). At the same time, it is proposed to increase the existing maximum tax rate from 25% to 30% for natural individual taxpayers and firms with tax slab adjustments. According to today’s budget proposal, for women and senior citizens aged 65 years or above, the limit is Tk4 lakh, physically challenged persons and members of the third gender Tk4.75 lakh and the freedom fighters Tk5 lakh. However, the threshold would be increased for parents or legal guardians of physically challenged/adopted child by Tk50,000 for each child. At present, the minimum tax applicable to taxpayers other than company taxpayers in Dhaka North, Dhaka South and Chattogram City Corporation is Tk5,000. For other City Corporations, it is Tk4,000. For other areas outside the City Corporation, minimum tax is Tk3,000. Currently, no surcharge is payable for net asset valued up to Tk4 crore. For assets exceeding Tk4 crore, a 10% surcharge is applied, and for those exceeding Tk50 crore, the surcharge rises to 35%.

Source: https://www.tbsnews.net/economy/budget/tax-free-income-ceiling-remains-tk35-lakh-870646

Govt aims for cashless economy by 2031

The government has pledged to make ‘Smart Bangladesh’ by 2041 with four basic pillars — Smart Citizens, Smart Economy, Smart Government and Smart Society. The goal of the Smart Economy is to create a circular economy that is fueled by modernisation of industry, the expansion of the ICT sector, and a strong technological foundation. An official document presented in parliament highlights the objective of achieving complete cashless transactions by 2031, alongside attaining an average per capita income of USD 12,500 and eradicating poverty by 2041. The roadmap also includes achieving a 2.5 per cent Total Factor Productivity (TFP) growth in GDP by 2041, while ensuring the digital inclusion of all private sectors, including Cottage, Micro, Small, and Medium Enterprises (CMSME). It mentioned that priority will be given to frontier technologies in technological capacity building and setting regional precedents in the use of technology to facilitate business.

Source: https://today.thefinancialexpress.com.bd/trade-market/govt-aims-for-cashless-economy-by-2031-1717863031