President approves national budget

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FE Report
President Iajuddin Ahmed approved Thursday the national budget for financial year (FY) 2007-08 with some changes in fiscal proposals that would cost the government Tk 4.0 billion in revenue, officials sources said.
"The changes have been made in the rates of duty on computer, newsprint, phone sets, raw materials and capital machinery without altering the new duty structure," said the chairman of the National Board of Revenue (NBR), Badiur Rahman, on his return from Bangabhaban.
The budget was approved after it was placed by Finance and Planning Adviser Mirza Azizul Islam to the President at around 2.15pm.
The NBR chairman and acting finance secretary Mohammad Tareque accompanied the finance adviser.
The new budget will be effective from July 1.
Although the changes in the fiscal measures will cost the NBR Tk 4.0 billion in revenue, the caretaker government (CG) has made them in the interest of consumers, businesses and thrust sectors, the NBR chairman said.
"Duties proposed on consumer products in the budget has been withdrawn, but the duty readjustment on raw materials and capital machinery will be made later through special orders," he added.
In the absence of parliament, the ministry of finance (MoF) sought the presidential approval to pave the way for enactment of an ordinance under section 93 (1) of the Constitution to make the budget effective.
The finance and planning adviser, who announced the first ever full-fledged budget under a caretaker government on June 7, also sought approval of the advisory council Wednesday.
The NBR chairman said the changes in the budget reflect the desire and demand of the general people and businesses. The MoF had received 1800 opinions and suggestions on the proposed budget.
He, however, did not disclose the number of capital machinery and raw materials, which will come under the purview of the special statutory regulatory order (SRO).
More than 500 products, which used to enjoy duty-free import facility, have already been brought under a changed duty structure of 10, 15 and 25 per cent.
The MoF is likely to explain the changes in fiscal measures at a press conference on Saturday.
The approved budget worth Tk 871.37 billion has projected a 5.6 per cent deficit against income of Tk 615.56 billion.
The earnings include NBR tax revenue at Tk 438.50 billion, non-NBR tax revenue Tk 19.88 billion, non-tax revenue receipts of Tk 114.63 billion and foreign grants worth Tk 42.55 billion.
Businesses were critical about the proposal on withdrawal of zero tariff facility and the introduction of new duty structure saying that it would affect the local industry and encourage the import of finished products.
The MoF and NBR have ruled out such observations.