The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) has termed the proposed budget for the fiscal year 2013-2014 as ‘trade and investment-friendly’ budget.However, Dhaka Chamber of Commerce and Industry (DCCI) thinks that the implementation of the budget would be the key challenge as it does not seem be that much supportive in boosting investment in the private sector and containing inflation.
Giving an instant reaction to the proposed budget, FBCCI acting President M Helal Uddin said, “It’s a trade and investment-friendly budget.”
The trade body, however, said the private sector would be hit hard if the government borrows too much money from the banking channel exceeding the limit as it will shrink credit flow to the private sector.
Helal also laid emphasis on cutting bank interest rate sought steps in the coming monetary policy.
He also said the budget implementation will turn difficult if the political stability does not prevail in the country.
The FBCCI hailed Finance Minister AMA Muhith for increasing turnover tax ceiling from Tk 70 Lakh to Tk 80 Lakh.
It also appreciated the government for extending tax holiday facility till 2015. “It’ll encourage investment and employment.”
The FBCCI also hailed the government for increasing tax free income ceiling from Tk 2 lakh to Tk 2.20 lakh.
The FBCCI will formally give its reaction at a press conference that will be held on Saturday at its conference room.
In its reaction, the DCCI expressed doubt in achieving the 7.2 percent GDP growth by overcoming political instability. “There should have been specific directives on how the growth target would be achieved.”
It said there is no long-term plan in boosting domestic and foreign investment. ”The foreign investment will decline like the domestic investment if the government does not take any package plan.
It also expressed doubt whether the revenue collection target will be achieved. “There’s no realistic step in promoting PPP programmes,” the leading chamber said.
It also expressed frustration over shifting the Coal Policy formulation task to the next government.
The DCCI mentioned that there is no specific proposal in the proposed budget for setting up permanent large scale or medium power plant.
It also said the investment proposal of undisclosed money in the housing sector will push up the prices of land, while investment in the private sector will decline further. “Such provision should have been there for productive sectors instead of unproductive sectors.”
Chittagong Chamber of Commerce and Industry (CCCI) said the ‘ambitious’ budget will help expedite development in the country and appreciated the government proposal to make the PSI (Pre Shipment Inspection) optional in importing goods.
Bangladesh Women Chamber of Commerce and Industry (BMCCI) also hailed the budget.
They thanked the government for allocating Tk 80 crore for women entrepreneurs which, they think, will play important role for the development of women entrepreneurs. (Source: UNB)
