THE Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) sighted many shortcomings in the proposed budget for fiscal 2016-17 saying it did not reflect their concerns about various tax regimes they made in their recommendation to National Board of Revenue (NBR) before the announcement of the budget. The FBCCI believe that the government should accept their tax proposals and other suggestions regarding bank borrowing and funding of other mega projects. It will make private sector’s growth easier to achieve higher targets. Terming the budget as ‘most complicated ever’, the chief of the apex chamber has demanded review of the sensitive issues at a post budget press conference on Saturday listing the areas where it believe readjustment is necessary.
The Federation particularly calls for review of the income sheet projection particularly for micro to medium industries to make VAT system business-friendly. As the country is undergoing economic stagnation, the apex body said that the government should promote business-friendly climate by easing VAT system to the business community.
The FBCCI Chief made clear that business people want to pay tax but the NBR officials must be more cooperative if they want to increase government revenue. He said thousands of people still remain out of tax net and in FBCCI’s view NBR has no credible initiative to bring them under the tax net. If the taxpaying system turned digitized taxpayers can pay tax without hassle. The Federation called for fixing 0.5 percent package VAT on retailers and small shops and 3 percent turnover tax on businesses with a turnover between Tk 36 lakh and Tk 1.5 crore. It also said businesses in manufacturing and service sectors should be charged 15 percent VAT on their 26.67 percent value addition, which will result in 4 percent VAT at the end. The FBCCI fear that if their proposals are not accepted income generation from VAT and developing SMEs based industrialization may face collapse.
The apex chamber called for speed up in implementation of mega projects, particularly power generation projects. The process of investment, industrialization and employment generation will rapidly grow if big projects in energy and power sectors and other physical infrastructures are properly implemented. The apex body sounded critical on proposed refinancing of Tk 2,000 crore for state-owned banks; which have already lost their capital in different scams. In its view such steps will encourage further irregularities in the banking system. It suggested that no new investment would come in the garment sector if corporate tax is not brought down to 10 percent from the proposed 20 percent.
FBCCI must do everything to put the government on right track. We have no political opposition party either in the parliament or outside, so nothing to be expected from others.
