New budget to focus on agro investment

The upcoming national budget of FY2022-23 will focus on the growth of agricultural production to reduce import dependency, NBR sources said on Wednesday.

The government has recently given a guideline to the National Board of Revenue (NBR) to keep a 10-years tax holiday for the investment in agriculture-related 6-sectors including crop production, food processing plant, dairy, fisheries, fertiliser plants and agro-machinery and the tech sector.

In other words, those who will invest in this sector by June 30, 2030, will get the benefit of this income tax exemption, said the officials of NBR.

To avail of the tax exemption facility, a minimum investment of Tk 1.0 crore is needed with required registration with the Bangladesh Investment Development Authority (BIDA). The entire raw material must be collected from domestic sources.

Bangladesh has immense potential in the domestic agro-based industry. Development and employment of agro-based industries are possible by creating import alternatives for agricultural products, a study on agriculture said. 

The government has taken such initiatives to make the economy dynamic as well as create new job opportunities. Analysts say the aim is to create new ventures, especially in the rural economy, and to include more young people.

In the upcoming budget, Tk 15,000 crore would be given for agro sector incentives, up from Tk 9,500 crore in the current fiscal year.