Fiscal Measures in the Bangladesh National Budget of 2009-10: An Appraisal of Income Tax.

Abstract

The budget for the fiscal year 2009-10, for the National Parliament of Bangladesh, was proposed by the Finance Minister, Abul Mal Abdul Muhit, on June 11, 2009. The maiden budget of the newly elected government in Bangladesh is of the size Tk. 113,819 cr, the largest in history. It includes a gross revenue of Tk. 84,591 cr and the budget deficiency is Tk. 29,228 cr. This paper highlights the important fiscal measures taken through this budget regarding income tax and the implications thereof have also been examined. In many cases, tax rates and tax nets have been enhanced, and at the same time, fiscal incentives to encourage voluntary tax compliance and tax planning have also been introduced or the time period of existing benefits has been extended.