The American Chamber of Commerce (AmCham) has said that Bangladesh has to prepare itself for a post-pandemic recovery strategy as well as keep up the momentum for the economy to return to double-digit growth by attracting more foreign direct investment (FDI).
"We recommend tackling the twin challenges focusing on crisis management, prioritising expenditures and Foreign Exchange Reserve, inflation control, infrastructure developments to attract foreign direct investment (FDI) as well as the private sector, policy assistance and continuity to emphasize key procedural matters," AmCham President Syed Ershad Ahmed in response to the government's proposed budget for FY23, said in a press release.
“Since food safety ensures moderate inflation amidst global phenomenon, we expect agriculture to receive more incentives to ensure unchanged food production. We would appreciate more price reduction of Agricultural equipment and hybrid vehicle," the AmCham president said.
No significant economic growth is conceivable without a sustained Foreign Exchange reserve growth. Hence, instead of a gross import ban, Bangladesh should speed up the foreign-funded projects' implementation and reconsider its own funded projects having a sizeable import component, he added.
"Since the informal sector employs more than 85% of the workforce, the government should increase allocation to these sectors including women & youth held micro small and medium enterprises (MSMEs), innovation and start-ups to counter poverty and income inequality by establishing a robust social safety net system."
AmCham recommends that the National Board of Revenue (NBR) adopt automation at all possible levels at the same time to focus more on expanding the tax net.
"We suggest introducing the e-payment and e-TDS system and Digital Payments incentives to ensure accountability and transparency throughout the process," said Syed Ershad Ahmed.
"We appreciate the recent reduction of corporate tax; however, request the government to continue gradual reduction days ahead and that AIT adjustment and VAT should be withdrawn from industrial raw materials' import to enhance domestic production capacity."
Specific measures and corresponding budgetary allocation are essential for the climate resilience livelihood in geographically vulnerable areas. All projects going anti-environment and against the notion of a green economy should be abandoned, AmCham president said.
"Given that remittance, a major source of foreign currency, we are not in favour of the system of repatriation of embezzled wealth mixing in disguise with the earnings of hardworking taxpayers of Bangladesh," yed Ershad Ahmed said, adding "During pandemic and in recent days we observed how we are struggling to manage this sector. We strongly recommend effective modernisation of managing all ports' operations and allowance of a bonded warehouse facilities for non-RMG exports too. AmCham believes budget execution is what matters in the end and that should be measured both for quantity and quality.
