FBCCI terms budget business friendly :Stresses political stability
The Federation of Bangladesh Chambers of Commerce and Industry observed that the government tried to make the proposed budget for the fiscal 2008-09 business friendly.
The FBCCI leaders also noted that the interests of exporters were ignored in the budget proposals that contains some discriminatory duty structures providing chance to hit some industrial sectors including, steel sector.
Expressing reactions on the budget proposals, president of the country's apex trade body Annisul Huq feared that a huge deficit in the proposed budget might instigate inflation further.
He also observed that political stability in the country had no alternative to implement any government programme in the budget.
'The business community welcomes the government as it has tried to prepare a business and industry friendly budget,' said Annisul at the trade body's post-budget press conference at its conference room in the city three days after the budget proposals were announced.
After announcement of the budget proposal, the trade body leaders had consulted with the stakeholders and reviewed the proposals.
However, the apex trade body leaders lauded the budget proposal giving chance to individuals to legalise their undisclosed money through paying penalty tax.
Annisul pointed out that the duty cut on raw materials, funding and facilities for SMEs as well as continuation of tax holiday scheme put light on investment-friendly character of the budget proposals.
He lauded increased targets for food procurements, allocations for agriculture sector, spending in social safety programmes and continuation of minimum duty on most of the imported food grains.
The FBCCI chief opposed the proposed no change in the minimum income tax limit at Tk 1.5 lakh for the individuals.
The FBCCI leaders at a meeting with the finance adviser on Thursday morning demanded that the minimum income tax limit should be raised to Tk 2 lakh or above.
They strongly demanded review of the proposed same duty on the imported finished rods and billets as it could hit the local steel industries.
The FBCCI leaders also sought review of the proposed high duty on intermediary raw materials for plastic and rubber industries.
They reiterated that the apex trade body's demand for introducing fixed amount of duty on volume unit of imported milk powder and baby foods, and some non-food commodities, especially the basic metals.
Annisul said that imposition of one per cent duty on import of machineries for export-oriented enterprises and cut in their cash incentives were unjustified.
Regarding tax holiday scheme, he extended thanks to the finance adviser for continuing the facility but observed that the proposed scheme was not as simple as earlier's one.
'Total tax holiday should continue for industries for five years more,' he demanded.
'Increased bank loans by the government will fuels raise on bank rates instigating inflations,' he warned.
Replying to a query, the FBCCI president said process of freeing the two top leaders of the major parties, Sheikh Hasina and Khaleda Zia made him hopeful for holding a meaningful dialogue and successful national election.
Without political stability and establishment of democratic government in the country, national budget or development programmes of the government are very unlikely to boost economy,' he warned.
http://newagebd.com/busi.html#2 | 