Businessmen will be happy seeing next budget: Kamal

Finance Minister AHM Mustafa Kamal on Thursday said that the businessmen of the country would become happy to see the national budget for the next fiscal year (FY24).

"There is nothing to be afraid of seeing the next budget. You won't be looser," he told the business community.

The finance minister said this while addressing as the chief guest at the 43rd Consultative Committee meeting of the NBR and FBCCI centering the next budget held at a hotel in Dhaka.

Organized jointly by the NBR and the FBCCI, NBR Chairman Abu Hena Md Rahmatul Muneem chaired the meeting while FBCCI President Md Jashim Uddin moderated it.

Kamal said although the global economic recession is prevailing across the globe, but the private sector has been steering ahead the economy of Bangladesh. "Bangladesh has advanced its position to 35 from 41 in the global economy. All have contributions to such feat. We're now in the same line of India, Malaysia. We want to move ahead taking alongside all," he said.

The finance minister noted that despite the fragile global economic condition, the economic attainments of Bangladesh are excellent. "The global economic growth in this year would be 3.9 percent which was 3.5 percent last year. The economic growth before the pandemic was 3.8 percent. Despite this, the economic progress of ours is outstanding," he said.

Kamal also mentioned that the international agencies like the World Bank and IMF have lauded highly the progress of Bangladesh.

Echoing with the Finance Minister, NBR Chairman Muneem said that everyone would be happy after getting the budget for the next fiscal year (FY24). 

Stressing the need for enhancing the capacity of trade and commerce as well as industries to face the challenges of becoming a developed country, he said that the revenue board is framing policy in line of that. 

The NBR chairman also called upon the business community to produce high-end products and thus boosting their exports.

Placing a set of budget recommendations on behalf of the FBCCI, its president Md Jashim Uddin proposed for reducing Advance Income Tax (AIT) in phases at import stage at 3 percent from 5 percent to reduce the cost in industrial production and in trade and commerce. 

He also proposed for keeping all the essential consumer items outside the purview of the AIT.

Currently, there is a provision for 2 percent AIT at supply stage at all kinds of essential items like rice, wheat, potatoes, onion, garlic, chickpeas, turmeric, chili, corn, flour, salt, edible oil, sugar and all kinds of fruits.

Considering the high cost of living and the high inflation, the country's apex trade body, also proposed for raising the tax free income ceiling for the individual taxpayers to Taka 4 lakh from the existing Taka 3 lakh. In case of the female taxpayers and senior citizens, the tax free income ceiling has been proposed at taka 4.50 lakh from the existing 3.50 lakh.

The FBCCI President proposed for imposing value addition based unique 15 percent VAT on products and services adding that if such VAT is imposed, then various SRO based imbalanced tax rates and complexities would be removed from products and services. Side by side, the tax management will be simplified.

He also suggested for reducing the VAT at 0.5 percent on supply of products at wholesale and retail level adding that the existing 5 percent VAT has been putting a burden on the business expenditure.

Besides, the FBCCI also proposed for widening the coverage of VAT net in order to expand the operations of VAT up to upazila level. Besides, the apex trade body also suggested for ensuring automation in VAT registration, submission of returns, refund and audit to simplify the businesses of the taxpayers and supervision of the VAT authority.

Taking part in the open discussion, Dhaka Chamber of Commerce and Industry (DCCI) president Barrister Sameer Sattar suggested for reducing the corporate tax rate by 2.5 percent.

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) vice president Shahidullah Azim suggested for releasing fabric, yarn and other necessary materials upon guarantee to reduce complexities related to HS code.

BTMA president Mohammad Ali Khokon proposed for withdrawing all types of duties on man-made fibre.

Bangladesh Tanners Association president Shahin Ahmed proposed for withdrawing all sorts of duties on import of machineries for setting up Effluent Treatment Plants (ETPs) and Central Effluent Treatment Plants (CETPs).

Source: BBS