BCI says govt’s deficit funding to affect pvt sector, BTMA seeks chop in export tax

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The Bangladesh Chamber of Industries sees too little proper outline in the proposed budget for another fiscal year to overcome the ongoing economic crisis due to the coronavirus pandemic.

The opportunity for legalising undisclosed money in the budget is totally unacceptable and it'll discourage compliant taxpayers, the chamber said. 

BCI president Anwar-ul-Alam Chowdhury Parvez found in his budget response said that the federal government must have been more pragmatic found in setting the mark as the proposed 8.2 % GDP growth aim for was ambitious.

The BCI president thought that the federal government borrowing for deficit financing could have adverse impacts on the private sector credit growth.

The federal government proposed to allocate 11.2 % of the total spending budget to the transfer and communication sector but the allocation was not important immediately and the amount of money should rather be included in the incentive package to revive the rural overall economy, the trade body said.

Parvez demanded a special package for developing latest entrepreneurs mainly because unemployment would increase as a result of COVID-19 pandemic.  

He urged the federal government to withdraw the 2-per cent source taxes against local letters of credit rating for essential commodities as the imposition would increase the prices of daily essentials.

The BCI president also demanded the continuation of source tax at the rate of 0.25 per cent for the export sectors.

The chamber, even so, thanked the government for reducing the organization tax and increasing the tax-free of charge income threshold for individual taxpayers.

The Bangladesh Textile Mills Association in its reaction said that it could be challenging for the textiles and readymade garments to survive in the international industry in the context of the Covid-19 pandemic as the federal government proposed 0.5 % withholding tax on export.  

BTMA president Mohammad Ali Khokon requested the federal government to create the rate of source tax at the prior rate of 0.25 per cent.

The trade body also demanded a rise in the prevailing alternative cash the help of 4 % to 10 % for six months and then compensate for the losses faced by the export-oriented textile mills because of the aggressive promotional strategies taken by competing countries.

BTMA as well proposed to waive the value added tax for a myriad of textile mills which shed Tk 20,000 crore worth of hometown yarn demand made through Pahela Baishakh, Eid-ul-Fitr and Zakat due to the general getaway this year.

The BTMA president thanked the federal government for proposing a tax holiday facility in the budget to inspire the establishment of a man-made fibre manufacturing industry.

THE BUSINESS ENTERPRISE Initiative Leading Production in its response on the proposed budget said that the massive deficit financing from the banking sector might to crowd out private sector credit which had recently been sinking due to the pandemic. 

It termed the federal government set revenue collection target ‘a bit ambitious’ taking into consideration the present situation since it was 9.8 % greater than the revised target. 

Considering the global economic loss and effect on businesses in the united states, the 8.2 per cent growth aim for would also be almost difficult to accomplish, BUILD opined.

The organisation, even so, said that the federal government had rightly centered on health, education, agriculture and employment and all the announced policies and the allocated cover these areas would have to be spent and managed ethically and practically.

BUILD recommended for a good credit assurance scheme for small entrepreneurs and demanded collateral-no cost loans for cottage and micro entrepreneurs.

In addition, it said that the continuation of just one 1 per cent incentives may not be a sufficient amount of for the country’s clothes exporters and tax in source should remain finally year’s rate of 0.25 %.

Progga and the Anti-Tobacco Media Alliance in its reaction said that the federal government had lost the opportunity to acquire Tk 11,000 crore found in additional revenues from the tobacco sector by not considering the recommendations of medical ministry.

The organisations alleged that the four-tier pricing of cigarettes remained untouched and it could motivate the youth to take up smoking or continue with the habit.

The proposed budget also lacks any significant initiative to curb the usage of bidi which is quite detrimental to public health, PROGGA and ATMA said.

To motivate the export of tobacco and tobacco products, the spending plan proposed to wthhold the export duty exemption service for processed tobacco, the organisations alleged.
Source: https://www.newagebd.net

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