Room leaders hail the budget and make their points

Different chamber heads hailed the budget for the new fiscal year and also made their own suggestions in their snap reactions.

Welcoming the proposed budget for the 2022-23 financial year, the country’s apex trade body, the FBCCI, said it was a matter centered on “development” and “well-being”.

Calling the period “abnormal”, the chairman of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), Jashim Uddin, said the government’s attempt to come up with a welfare-focused budget in this time was great.

However, the president of the FBCCI expressed his disagreement with the proposed budget provision allowing the legalization of money smuggled from the country.

“I don’t like the layout, I think it shouldn’t be allowed,” he said.

Jashim Uddin said it would discourage honest and loyal businesses in the country.

He also said there should be a deadline to legalize this money, if the government wants to introduce the provision.

Mr. Jashim Uddin said that it was very unlikely that the money hidden abroad would ever come back to the country.

He said LDC graduation, inflation, budget deficit and lack of implementation capacity remained some of the major challenges for the budget.

Regarding reliance on local banks to meet the budget deficit, the top trade body has asked the government to raise funds from alternative foreign sources.

But the FBCCI welcomed the drop in corporate tax rates on different business segments.

However, Mr Uddin said the budget proposal should have reduced the withholding tax on local supplies.

The President of FBCCI expressed his hope that the revenue target for this year will be achieved.

The Dhaka Chamber of Commerce and Industry (DCCI) says tackling inflation to protect citizens’ purchasing power will be the main challenge in the upcoming budget.

Improving private sector investment, job creation, revenue shortfall and financing are other challenges in the draft budget for the 2022-23 fiscal year, he adds.

DCCI President Rizwan Rahman reacted to the proposed budget on behalf of the chamber on Thursday.

For targeted GDP growth, he said, the government should focus on gradually widening the tax net, automating the tax structure, setting a rational revenue target and ensuring consistency in public spending.

The inconsistency between revenue and expenditure in the proposed budget may lead to reliance on bank borrowing or external debt, which will put increased pressure on private sector investment, he adds. .

DCCI believes that a planned, timely, cost-effective and achievable budget is more effective than a big budget, Rahman argues.

To ease the burden of inflation on middle and lower middle income groups, the DCCI proposes to raise the ceiling on non-taxable income for individuals.

However, few slabs can be created for the highest income bracket but obviously rationally, he adds.

The budget also proposes that publicly traded companies that unload more than 10% of their paid-up capital into the market through the IPO can take advantage of the possibility of granting a 20% corporation tax.

Listed and unlisted companies that have cash expenditures or investments of Tk 1.2 million per year and transact through banking can enjoy a corporate tax of 20% (listed) and 27 .5% (unlisted).

If a listed company does not meet these two conditions, it will have to pay a corporation tax of 25%, which is quite insignificant, according to the DCCI.

The president of the DCCI suggests that the corporate tax rate be reduced to be more competitive not only on the international market, but also on the local market.

Citing 58.36% implementation of ADP (annual development program) through May 2022, he said infrastructure megaprojects should be completed at a faster pace, ensuring transparency and accountability. .

The Metropolitan Chattogram Chamber of Commerce and Industry (CMCCI) hailed the budget calling it pro-development and pro-people.

CMCCI Chairman Khalilur Rahman also expressed his gratitude to Prime Minister Sheikh Hasina and Finance Minister AHM Mostafa Kamal for placing the budget in favor of development.

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