10-yr tax exemption proposed for local agro industries

Staff Correspondent

4 June, 2021 12:00 AM printer

Finance Minister AHM Mustafa Kamal has proposed a 10-year tax exemption for industries engaged in processing locally grown agricultural products and machinery in the national budget for 2021-2022 fiscal year.

 “I propose to offer tax exemption, subject to certain conditions, for 10 years for industries engaged with processing locally grown fruits and vegetables, producing milk and dairy products, producing baby foods entirely from locally grown agricultural products, and manufacturing of agricultural machinery,” he said while unveiling the budget in Parliament on Thursday.

Flourishing of agro-based industries and generation of employment are possible through the production of import-substitute agricultural products in Bangladesh, the finance minister said.

 Mentioning that agriculture is their third highest priority sector in order to ensure food security, he has proposed allocating Tk 16,201 crore for the sector.

­The ministry was given Tk 14,215 crore in agriculture sector in FY2020-21 while Tk 14,049 crore in FY19-20.

Mustafa Kamal said although food security was likely to be threatened due to the interruption caused by the coronavirus pandemic in the production and supply system of foodgrains, Bangladesh did not have to face any problem thanks to the timely decision taken by the government. “To keep the market price of foodgrains stable, rice and flour are being distributed through the OMS programme. To increase the production of Boro crops, a target has been fixed to cultivate hybrid paddy on an additional 50,000 hectares of land.”