When announcing the budget for fiscal year 2015-16, Finance Minister
AMA Muhith, aside from announcing an ambitious 7.3 percent GDP growth
target, thankfully kept the import duty on motor vehicles as is from
last year.
The focus of the budget has shifted to the development of the transport sector and easing traffic congestion. The budget allocation for the transport sector in 2014-15 was 6864 crore taka. That figure for 2015-16 has thankfully gone up to 7912 crore taka. Alongside the completion of ongoing development projects, the proposed budget has no allocation for the building of new roads, instead, the primary focus of the Roads and Highways Ministry will be in ensuring maintenance and expansion of the existing road network, much of which is in shambles at present.
Another issue the budget puts focus on is the easing of traffic congestion in the cities. Public transport will play a major role in that, with funds allocated for more double decker and articulated buses procured by the BRTC. The finance minister also suggested a separate body coordinating traffic management in the capital city.
The highlight of the projects underway to reduce congestion and improve mobility would have to be the Metro Rail project. A defining characteristic of mega-cities abroad, an effective metro system is just what Dhaka needs to ease the load on the roads. Expected date of completion is 2019.
Aside from the transport sector, the finance minister shone a positive light on new industrial undertaking, granting a tax holiday for local manufacturers. With Proton-PHP entering the newly minted automobile manufacturing sector in Bangladesh, this is undoubtedly good news.
The only downside to what seems to be a great budget with regards to the transport sector is the supplementary duty placed on imported car tyres, up to 20% from the existing 0%. While the move is mainly protectionist considering the growing local tyre manufacturers, it's a blow to consumers, who will likely give locally made tyres a wide berth due to their low-quality and safety standards compared to foreign brands.
All in all, the 2015-16 budget should be great for the transport and automotive sector, providing the essential breathing space for importers and car owners. Or it would be great if proposed policy can be implemented effectively, so fingers crossed.
The focus of the budget has shifted to the development of the transport sector and easing traffic congestion. The budget allocation for the transport sector in 2014-15 was 6864 crore taka. That figure for 2015-16 has thankfully gone up to 7912 crore taka. Alongside the completion of ongoing development projects, the proposed budget has no allocation for the building of new roads, instead, the primary focus of the Roads and Highways Ministry will be in ensuring maintenance and expansion of the existing road network, much of which is in shambles at present.
Another issue the budget puts focus on is the easing of traffic congestion in the cities. Public transport will play a major role in that, with funds allocated for more double decker and articulated buses procured by the BRTC. The finance minister also suggested a separate body coordinating traffic management in the capital city.
The highlight of the projects underway to reduce congestion and improve mobility would have to be the Metro Rail project. A defining characteristic of mega-cities abroad, an effective metro system is just what Dhaka needs to ease the load on the roads. Expected date of completion is 2019.
Aside from the transport sector, the finance minister shone a positive light on new industrial undertaking, granting a tax holiday for local manufacturers. With Proton-PHP entering the newly minted automobile manufacturing sector in Bangladesh, this is undoubtedly good news.
The only downside to what seems to be a great budget with regards to the transport sector is the supplementary duty placed on imported car tyres, up to 20% from the existing 0%. While the move is mainly protectionist considering the growing local tyre manufacturers, it's a blow to consumers, who will likely give locally made tyres a wide berth due to their low-quality and safety standards compared to foreign brands.
All in all, the 2015-16 budget should be great for the transport and automotive sector, providing the essential breathing space for importers and car owners. Or it would be great if proposed policy can be implemented effectively, so fingers crossed.
