Budget ambitious but business-friendly: DCCI

Dhaka Chamber of Commerce and Industry (DCCI) President Shams Mahmud on Thursday said the proposed national budget for 2020-21 financial year is an ambitious one but finds it business-friendly.“The proposed budget is focused on rescuing the economy from the downfall due to the coronavirus pandemic. Hence, it is a business-friendly one … It is ambitious but positive,” he said while talking to the media at a virtual briefing.
“Corporate tax has been reduced and we welcome the facility of whitening black money, however, pressure on the internal economy will be looming due to the pandemic. Our doctors are suggesting that the infection in Bangladesh might peak in August so it will be challenging for the internal economy,” he added.
He noted that further incentives are required to take the economy forward.
“Incentives announced earlier were instantaneous and were given out to stabilise the economy. We are yet to conduct an economic assessment on the overall situation which might take place in August. To reach the GDP target proposed for the coming fiscal year, more stimulus packages are necessary,” he said.
The DCCI chief praised the initiative to increase investment and create employment through the budgetary proposals.
The decision to slash corporate tax was hailed by the DCCI president.
He urged the government to increase manpower of the National Board of Revenue to help collect additional revenue at the field level.
“In order to maintain the flow of private investment, it is necessary to increase the revenue without imposing new tax burden on the existing taxpayers,” Omar Taseer added.
He mentioned that the health sector requires more budget allocation in the Annual Development Programme (ADP) due to the coronavirus outbreak.
“The highest allocations in the ADP have been given to the Local Government and Rural Development, Road Transport and Highways Department and Power Department. But in the current context, considering the coronavirus outbreak, the allocation in the health sector should be further increased,” he said.
The DCCI urged to reconsider the government’s decision to increase source tax in export industries.
“Global export demand has declined in the aftermath of the coronavirus outbreak. All export-oriented industries will face challenges if the source tax is increased to 0.5 percent,” said Shams Mahmud, repoprts UNB.