Kazi Zahidul Hasan :
The government is focused on presenting a budget with clear objective to spur economic growth, encourage investment, reduce cost of doing business and expand the tax base through creation of a business-friendly environment.
Finance Minister AMA Muhith will present the budget for the fiscal year (FY) 2016-17 on June 4 with a plethora of initiatives to further stimulate the country’s investment climate and growth, officials said.
“The government is basically focused on presenting a business and industry- friendly budget with no increase in overall tax burden on the local enterprises and industries,” an official entrusted with budget preparation told The New Nation on Tuesday.
He said, necessary fiscal measures will be incorporated in the budget to create a business-friendly environment, improve investor sentiment and revive economic growth.
“Proposals will be made to cut corporate tax to encourage new investment. However, the cut to the company tax rate will be small in year one and grow in following years. Besides, industries will be offered tax holiday for an extended period,” he added.
The official further said that budgetary measures will be there to protect local industries and their growth.
When asked, he said, proposals which we have received from trade bodies will be incorporated in the budgetary measures as far as possible.
“The government is keen to improve the country’s investment climate and take necessary measures to lure both local and foreign investment,” he said, adding, “The government is building several big economic zones to prop up investment”.
He also said that the next budget will propose huge investment for the completion of the ongoing mega projects. Completion of the mega projects will ensure a better communication access for the businesses and boost economic growth.
“The government should focus on an investment and business-friendly budget with necessary measures to protect local industries,” M Shafiul Islam Mohiuddin, Senior Vice-President of Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) told The New Nation on Monday.
He said an enterprise-friendly tax regime is a must while a balance between duty on imported goods and local products must be ensured to protect local industries.
The FBCCI leader said that the growth of manufacturing was slowing in the wake of rising cost of production, and gas and electricity crisis.
“The government must ensure uninterrupted energy supply to the industries and formulate a stable and long-term energy pricing policy to create a smooth business and investment climate,” he noted. Besides, it should also take necessary measures to reduce cost of doing business and ensure access to low cost finance for all the enterprises and export-oriented industries for the growth of local industries and job creation, he said.
Shafiul Islam said the next budget should propose higher spending on infrastructure to facilitate the country’s trade and business.
He also urged the government to implement the new VAT law after making some changes on it in line with the trade bodies. Otherwise, it will adversely affect on the country’s trade and business.
