In what he predicted to be his best budget yet, Finance Minister AMA Muhith bet big on public pockets to not just finance pensions and salaries, but also to build bridges and power stations and even finance ailing government banks. The risk is that the long-debated uniform VAT – despite its more than a thousand exemptions – could dampen the desire to spend. But it’s heavy reliance on VAT collections and public borrowing has arguably exposed the government to some risk. Prices upThe finance minister proposed wide ranging fiscal measures that would raise the prices of many an imported item to encourage local industry and manufacturers. Besides the 25% export tax on tobacco produce, the finance minister proposed 2.5% surcharge on tobacco products including gul, zarda and e-cigarettes.

Source: Dhaka Tribune June 01, 2017 20:10 UTC