Staff Reporter :
In an effort to tackle inflation and stabilize the economy, Finance Minister Abul Hassan Mahmood Ali presented national budget, amounting to Tk7.97 lakh crore, for the fiscal year 2024-25.
The budget was announced in Parliament on Thursday, marking a significant milestone from the first budget of Tk786 crore introduced by Tajuddin Ahmad in the fiscal year 1972-73.
This monumental budget, endorsed by Prime Minister Sheikh Hasina in May, represents the 54th national budget and the 25th under the Awami League (AL) government across six terms. Notably, it is the 21st budget under Prime Minister Hasina’s leadership.
A Contractionary Budget in Challenging Times
The theme for the upcoming fiscal year’s budget is “Pledge towards
building a happy, prosperous, developed and smart Bangladesh,” aiming to restore the country’s economic stability. Unlike previous years where the budget size typically increased by 10% to 12%, this year’s budget reflects a more modest increase of less than 8%. The contractionary budget anticipates a lowered GDP growth of 6.7%.
End to Duty-Free Privileges for MPs
In a move that has generated considerable discussion, Finance Minister Ali proposed ending the longstanding duty-free privilege for lawmakers on importing cars. Since 1988, Members of Parliament have enjoyed this benefit, which has allowed them to import vehicles without paying the usual duties.
“If any person imports a car from abroad, they have to pay 25 percent of import duty, 15 percent of VAT, five percent of advance tax, and about 400 to 500 percent supplementary duty,” stated the finance minister during his budget speech. Under the new proposal, lawmakers will now be required to pay a 25 percent import duty on imported cars, aligning their privileges with the general public.
This proposed change comes under the Members of Parliament (Remuneration and Allowances) Order, 1973 (President’s Order), which currently grants MPs the duty-free facility. If approved, this measure is expected to generate additional revenue and address perceptions of inequality in the tax system.
Reactions and Implications
The proposal to remove the duty-free car import privilege has sparked a range of reactions. Advocates argue that it demonstrates the government’s commitment to equitable fiscal policy and economic reform. Critics, however, caution that the move might face resistance from lawmakers accustomed to these benefits.
In the broader context, the record-breaking budget reflects the government’s strategic response to economic challenges. With a focus on inflation control and economic development, the budget aims to position Bangladesh on a path towards sustainable growth. However, its success will depend on effective implementation and the ability to navigate both domestic and global economic uncertainties.