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The Federation of Bangladesh Chambers of Commerce and Industries (FBCCI) has said that in the current scenario, this size of the proposed national budget for FY2024-25 is realistic and implementable in line with the government's commitment to meet the needs and aspirations of the people of the country.
It, however, also expressed concern about some provisions including the rise of import duty from zero to 1 per cent on all types of capital machinery for industries in economic zones and hi-tech parks for FY25.
FBCCI President Mahbubul Alam shared the apex trade body’s views on the proposed Tk 7,97,000 crore budget while presiding over a press conference held at the FBCCI Icon in Dhaka’s Motijheel on Saturday.
He said, “Good governance and proper monitoring are essential for effective budget implementation, requiring clear direction, planning and a focus on improving efficiency, transparency, accountability and oversight quality. Strengthening public-private sector partnerships is also crucial.”
“The existing import duty on capital machinery and construction materials for establishments located in economic zones and hi-tech parks will discourage investors in these special regions and send a wrong message to foreign investors.
“The proposal to reduce tax rates for non-listed capital market companies is expected to encourage private investment. However, we feel that the terms of cash transactions are not business-friendly when it comes to reducing tax rates,” he said.
“That is why we think it is important to keep harmony between the monetary policy and the fiscal policy,” he added.
Mahbubul continued, “Moreover, the economic development trend is impossible to continue without proper investment and industrial development. Consistency in fiscal policy is essential so that investors can trade with confidence.
“We proposed to reduce the rate of deduction of tax at source on all exports to 0.5 per cent instead of 1 per cent. Since there is no reflection of this in the budget, I request reconsideration of the proposal.”
He said, “Considering the current inflation, we recommend reconsidering the tax-free income limit of Tk 4.5 lakh. We also urge reconsideration of the proposal to abolish Advance Income Tax (AIT) and Advance Tax (AT).”
“Tax officials are rewarded for uncovering tax evasion, resulting in misuse of the law. We proposed to abolish the reward system and provide alternative incentives to reduce the discretionary power of government officials. Since this is not reflected in the budget, I request reconsideration of the matter,” he added.
The FBCCI president went on, “We called for making the Tax Appellate Tribunal impartial and independent and appointing a member of the judiciary as the president of the Tribunal to ensure justice. At present, there is a provision to make a member of the National Board of Revenue (NBR) the president. We urge reconsideration of this proposal.”
“Reforming the NBR and ensuring business-friendly revenue management is vital for achieving targeted revenue collection. Increasing the tax-GDP ratio requires expanding tax coverage and offices to upazilas,” he said.
“We are reviewing income tax, excise, and duty notifications related to money bills and the budget. We have sought their views from member organisations. FBCCI's post-budget recommendations on the proposed budget will be presented to the government after consultation with the organisations,” he added.
Mahbubul also said, “Political and environmental factors are adversely affecting our economy. To implement the budget effectively, we must address challenges such as high foreign exchange rates, loan interest rates, inflation, and foreign exchange reserves.”
FBCCI Senior Vice President Md Amin Helaly, DCCI President Ashraf Ahmed, BKMEA Executive President Mohammad Hatem and senior FBCCI leaders were also present at the event.
