Budget 2022: Star-up friendly proposals and initiatives

Big news for Start-Up

1. In the recently proposed budget finance minister reduced the turnover tax for start-ups from 0.60 to 0.1.
2. Except for income tax returns, start-ups don’t need to file any other report
3. Losses will be adjusted up to 9 years.

Star-ups operate in a fast-changing market. As such speed is often the difference between a successful start-up and an unsuccessful one. One of the major barriers for Bangladeshi start-ups was the high delays in document filing. According to a study, 71% of entrepreneurs consider Bureaucratic and technical problems a primary challenge for start-ups. Furthermore, 35% think complex documentation is constraining start-ups. New proposed benefits for start-ups will address this issue and encourage entrepreneurs to build start-ups. Furthermore, the reduction of turnover tax will encourage new growth in the start-up market. 

BB to carry out a feasibility study for crypto alternative: The Bangladesh Bank will carry out a feasibility study on the possibility of introducing digital currency as an alternative to Crypto Currency in Bangladesh. The main purpose of launching Central Bank Digital Currency (CDBC) is to facilitate currency in virtual transactions and to encourage startups and e-commerce businesses.

Digital Banks to accelerate financial inclusion: The government will examine the possibility of establishing digital banks to expand and accelerate financial inclusion. Govt. expects digital banks will bring huge employment opportunities for young IT workers.