Bangladesh Budget 2008-09 and SME

Budget 2008-09 identifies the SME (Small and Medium enterprise) as the thrust sector,the development of which is important for the growth of economy in Bangladesh.

The budget suggests to continue no-income tax policy to keep the income of the manufacturing SME articles free from taxes by defining SME as overall turnover not exceeding Tk. 2,400,000.00

Budget proposes
a) Exemption of income tax from income of export of handicrafts
b) Upper limit of investment in capital machinery to enjoy cottage industry benefit , be increased from Tk 700,000.00 to Tk. 1,500,200.00 and annual turnover limit be raised from 2,000,000.00 and Tk. 2,4000,000.00
c) Withdrawal of VAT at the production stage of hand made buiscuits and fabrics from artificial fibre and thread using handloom to provide impetus to the small , labour intensive ad employment friendly industries.

Budget hopes that these measures will help the growth of the sector.

An ordinary citizen

Post Script:
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