Tax exemption proposed for women-owned SMEs

Finance Minister AHM Mustafa Kamal has proposed to exempt small and medium enterprises (SMEs) run by women entrepreneurs from turnover tax in the proposed 2021-22 fiscal year again.

However, the exemption will be applicable to only those enterprises that generate Tk 700,000 or less in turnover.

"As a special incentive to the SME sector and also for the sake of development of the women entrepreneurs working in the SME sector, I propose to keep up to Tk 700,000 of business turnover of the women entrepreneurs outside the purview of taxation," the Finance Minister said while announcing the proposed national budget for 2021-22 in the Jatiya Sangshad on Thursday.

Mustafa Kamal noted that the rise in the number of women entrepreneurs side by side with their male counterparts will ensure the economic and social empowerment of women.

He said the importance of Small and Medium Enterprises (SMEs) in ensuring economic development and bringing desired growth is immense. The government is working persistently to create equal opportunities for all to participate in the SME sector that relies on small capital and short production period.

The government is implementing priority programmes to develop small and medium entrepreneurs, especially from women, and create industrial workers at the rural and marginal levels, the Finance Minister said.

To address the economic impact of the COVID-19 pandemic, he said the government has adopted several incentive packages for micro, cottage and small and medium enterprises, including the provision of low-interest working capital facilities worth Tk. 20,000 crore, most of which have already been implemented.

Once these steps of the government in the SME sector are fully implemented, it is expected that the contribution of this sector to the national economy will increase to 32 percent by 2024, he added.