SEC Annual report, 1998-99

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Annual Report,1998-99}

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ECONOMY}

National Income:

In the fiscal year (1998-99) the total Gross (provisional) Domestic Product (GDP) was Tk. 1,74,926 crore. The provisional GDP growth rate was 5.2%. In 1997-98 GDP growth rate was 5.7%. The size of the Annual Development Program in 1998-99 was Tk. 13,600 crore. 45.72% of ADP was financed from internal sources.

Annual Budget, 1999-2000: The revenue proposals for this year budget are based on the following principles: --

To encourage and support local industries;

To simplify the tax system and reduce the tax burden of the citizens;

To counter smuggling; and

To increase revenue through rationalization of the tax system.

The exemption limit in respect of individual class of assesses have been enhanced from Tk. 60,000/- to Tk. 75,000/- and rate of tax have been restructured as follows: -

	Tax Rate
On first Tk. 75,000/- of total income	Nil
On next Tk. 50,000/- of total income	10%
On next Tk. 1,25,000/- of total income	18%
On the balance of total income	25%

Advance income tax at the rate of ten percent will be deducted at source from interest on savings certificates and will be treated as the final settlement of tax liability. Such interest income upto Tk. 25,000/- will be exempted from payment tax and from deduction at source. This measures will be applicable in respect of savings instruments purchased after June 10, 1999.

Advance income tax will be deducted at source on bonus shares just like dividends.

SEC Annual Report,1998-99

^{SEC
Annual Report,1998-99}