Budget FY22: 10-year tax exemption for agro industries, entrepreneurs

The government has decided to exempt tax facilities to agro-based industries and entrepreneurs for 10 years to facilitate the industries and generate employment.

The agriculture entrepreneurs, who will process fruits, vegetables, produce dairy and dairy products, and produce child foods, will get the benefit, Finance Minister AHM Mustafa Kamal said in his budget speech on Thursday.

Besides, 10-year tax exemption facilities will be continued for the entrepreneurs who produce agriculture machinery.

In his speech, the minister said the flourishing of agro-based industries and generation of employment is possible through the production of import substitute agricultural products in the country.

Furthermore, at this time of free trade, it is possible to take a substantial share of the global export market through value addition and diversification of agricultural products, he said.

"Taking these into consideration, I propose to offer tax exemption, subject to certain conditions, for ten years to industries engaged in processing locally grown fruits and vegetables, producing milk and dairy products, producing baby food entirely from locally grown agricultural products, and manufacturing of agricultural machinery," the minister said.