Agri budget 2021-2210-yr tax exemption proposed for local agro-based industries

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

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

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

The finance minister said agriculture is the third highest priority sector in order to ensure food security of the country.

The minister has earmarked Tk 16,201 crore for the agriculture sector to achieve the aim, activities such as farm mechanisation, incentives for irrigation and seeds, rehabilitation of agriculture, and provision of subsidies on fertilizers will be continued to increase food production.

The ministry was given Tk14, 215 crore in agriculture sector in FY’ 2020-21, Tk14049 crore in FY’19-20.

The minister said although food security was likely to be threatened due to the interruption caused by the 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 food grains 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 Boro paddy in an additional 50,000 hectares of land.”

The minister said construction of modern food warehouses or silos was undertaken in coordination with 7th Five Year Plan and Vision 2021 that increased the existing storage capacity of food grains at the government level in the country to about 21.80 lakh metric tons.