Kazi Zahidul Hasan :
Business leaders on Wednesday urged the government to formulate an investment and business friendly budget for the upcoming fiscal year to drive forward the economy in the long-term.
They also demanded proper fiscal measures to reduce lending rates and corporate tax to improve overall investment climate as well as accelerate private sector investment.
“The upcoming budget should be business and investment friendly in nature and the government should bring some tax reforms in it to boost the country’s manufacturing activities,” President of Federation of Bangladesh Chambers of Commerce and Industries (FBCCI) Kazi Akram Uddin Ahmed told The New Nation on Wednesday.
He also said that the government should slash the import duty on capital machinery and raw materials to encourage industrialisation. “A higher tax should also be imposed on finished products to protect local industries” he added.
Terming the existing lending rates are ‘too high,’ Kazi Akram Uddin Ahmed called upon the government to bring down it to single digit.
“Banks are charging high interest rates that are holding back private sector investment,” he said, adding, “There is no alternative to reducing interest rate to increase private investment which remains sluggish for the last couple of year”.
The FBCCI leader further said that the next budget should incorporate some provisions so that the lending rates could be bought down to a rational level.
“Corporate tax is also high in Bangladesh compared to neighboring countries. So, necessary fiscal measures should also be taken to curtail in corporate tax,” he added.
Kazi Akram Uddin Ahmed also urged the government to simplify the business registration procedures, utility connection, tax payment and rapid development of the special economic zones to encourage the private sector’s investors.
“The government should place an investment and business friendly budget to boost economic activities in the country,” Reaz Bin Mahmood, Vice-President of Bangladesh Garments Manufacturers and Exporters Association (BGMEA) told The New Nation.
He said, the government should not imposed new taxes on the export-oriented industries, especially on RMG units, considering present condition of the export sector.
“The garments sector suffered serious setback from the recent political turmoil. Many of the garments factories have became sick following loss of export orders and delay in shipments during the period,” he said.
As the industry is passing through a critical time, the BGMEA leader called upon the government to exempt tax at source on garments export to help recoup losses of the apparel makers suffered during the recent political turmoil.
He also demanded for budgetary allocation for quickly implementation of garments industrial park and dormitories for the garments workers.
“Budgetary allocation should also be made to impart training of the garments workers,” he added.
