FBCCI for increasing allocation to energy

Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) has called upon the government to increase allocation to energy sector to ensure uninterrupted electricity and gas supply to the industries of the country.

The apex chamber also recommended prioritising coal-based power plants and renewable energy to ensure uninterrupted energy supply to factories, and increasing allocation to agriculture, education and social safety programmes to tackle future hurdles.

Speaking at a press conference on the proposed budget for fiscal year 2023-24 at FBCCI auditorium in the capital, FBCCI President Md Jashim Uddin said, “To keep production running in factories, uninterrupted electricity and gas supply is significantly needed. The government should prioritise coal-based power plants and renewable energy to ensure it.”

Jashim also proposed withdrawing VAT and taxes on import of raw materials for the production of renewable energy.

“The government can cut allocation on communication sector, if needed, to increase the allocation to energy sector. If we can’t protect local industries, we have to import different products amid the ongoing dollar crisis,” he said.

The FBCCI president said the industrial production should be kept active to ensure the government’s revenue collection. And for that there is no alternative to affordable and uninterrupted energy supply. The government needs to be more strategic in allocating funds to the energy sector. Besides, the government should strengthen the capacity of Bangladesh Petroleum Exploration and Production Company Limited.

Jashim also said, “The government will collect Tk 1,55,395 crore from internal sources to meet the budget deficit. Tk 1,32,395 crore will be collected from the banking sector. This will create a barrier in the flow of credit to the private sector.”

In such a situation, he requested the government to collect the amount from foreign sources at the lowest possible interest rate, instead of borrowing from the banks.

Pointing out that nothing much was seen in the proposed budget for the export-oriented sectors as well as the SME sector, the FBCCI president recommended withdrawal of all types of taxes including VAT on man-made fibre and to reduce the taxes at source on exports from 1 per cent to 0.5 per cent.

Regarding the personal income tax limit, the FBCCI president said, “Considering the cost of living, inflation and the overall economic situation, the income tax free limit has been increased from the current Tk 3 lakh to Tk 3.5 lakh. We proposed to raise this tax free limit to Tk 4 lakh keeping in mind the current inflation. We urge the government reconsider the matter.”

Mentioning that advance income tax (AIT) and advance tax (AT) at the import level are increasing business costs, Jasim Uddin said, “I proposed to abolish AIT and AT but no reflection was seen in the proposed budget in this regard. Due to the non-refund of AIT, our business operational costs have gone up.”

Jashim also said “If needed, the government should conduct tax census to widen tax net in the country. NBR can set up its office at upazila level to attain the revenue target.”