FBCCI hails proposed budget for FY23, terms it as ‘development, welfare-oriented’

Business Desk: Dhaka, Jun-11,

Hailing the proposed budget for the fiscal year (2022-23), Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) President Md Jashim Uddin today said that this budget would be helpful for upholding further the country’s desired development march during this crisis situation.

The FBCCI President also expressed his gratitude to Prime Minister Sheikh Hasina and Finance Minister AHM Mustafa Kamal for delivering a development and welfare oriented budget prioritizing the demands of common people despite numerous adversities and limitations amid the COVID-19 pandemic and the Russia-Ukraine crisis.

Jashim said, “Prime Minister’s directives, visionary and astute planning and sincere efforts have strengthened our economic development as all indices of national economy have advanced including that of per capita income.”

The chief of the country’s apex trade body came up with such remarks at a press conference convened to give its reaction on the proposed budget held at the FBCCI building in the capital today.

Top FBCCI leaders and the DCCI President were present, among others, on the occasion.

The FBCCI President said that during the spring meetings of the World Bank and IMF this year, Bangladesh was lauded highly. It was said in the meetings that Bangladesh has turned into one of the fast growing economies of the world while the country has moved towards a donor country from an aid recipient country.

Jashim said it was also discussed in the meetings that there has been a silent revolution in Bangladesh terming it as a unique international recognition for the country.

He said the spring meetings of the World Bank and IMF also praised Bangladesh for successful implementation of its policies to face the Covid-19 pandemic and Ukraine crisis alongside economic recovery from its impact.

Jashim said that the size of Taka 6,78,064 crore budget is very much time befitting for materializing the pledges of the government to fulfill the demands, desires and expectations of the countrymen.

Citing ensuring good governance, proper monitoring, boosting of investment and production and collecting desired revenue through business-friendly revenue management as the major challenges of the new budget, he said clear directives and planning is necessary to ensure continuous improvement in skills, transparency, accountability and monitoring for implementation of the budget.

He also extended thanks to the premier for assuring to provide support towards establishing the “FBCCI Innovation Center”.

Jashim said the coverage of the social safety nets has been increased in the proposed budget which will play a significant role to achieve the SDG-1 and SDG-2.

Noting that controlling inflation would be a big challenge in the proposed budget, he said it is very important to reduce unproductive and unnecessary travel costs as well as controlling imports of luxurious and non-essential goods.

About corporate tax, he said despite reduction in corporate tax rates, the beneficiaries would not be able to take advantage of this opportunity since the advance income tax (AIT) and advance tax (AT) are in operation.

The FBCCI President thanked the government for the time befitting decision of removing tax discrimination in the export sector as the tax rate for all types of export-oriented sectors like readymade garment industry has been made 12 percent.

But, in case of exports, the tax at source has been proposed to be increased from 0.50 percent to 1 percent which will have a negative impact on exports in the current global situation, he observed.

In this regard, Jashim demanded of the government to reinstate the existing tax at source at 0.50 percent.

He also requested to withdraw the import duty imposed on solar panels since the import duty has been increased from zero percent to one percent in solar panels.

He said that the tax at source on supply of raw materials has been reduced from 7 percent to 4 percent while the tax at source on supply of commercial products has been reduced from 7 percent to 5 percent.

“As tax at source is refundable and increases business cost, so we are calling again for the withdrawal of the tax at source,” he added.

Considering the high living cost, inflation, and overall economic situation, the FBCCI President requested the government to reconsider the issue of raising the tax ceiling of individual taxpayers which is Taka 3 lakh.

He proposed for forming a trade facilitation department under the National Board of Revenue (NBR) splitting the revenue collection and revenue policy operations.

Besides, he demanded of the government for taking steps to adjust the advance income tax in due time through addressing the systematic complexities.

Jashim also proposed for waiving fully the direct tax on the start-ups for 3 to 5 years and ensuring 50 percent rebate on indirect tax.

Responding to a barrage of questions, the FBCCI President apparently opposed the proposed budgetary provision for giving tax amnesty to bring back the siphoned off money from abroad to the mainstream of the economy.
“I think it should not be allowed, it will discourage the country’s honest and loyal businessmen,” he noted.

In conclusion, the FBCCI President said, ”We think that the proposed budget will be more business, investment and revenue friendly if our recommendations are reconsidered.”

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