BCI hails next budget as ‘time-befitting’

The budget was a time-befitting one in the wake of the country’s economic recovery process in the post-pandemic era along with the war between Russia and Ukraine with the target of attaining 7.5 percent economic growth and containing inflation target 5.6 percent.

The observation was made by the Bangladesh Chamber of Industries in a press release.

The government has announced the budget of Tk. 6.78 trillion which seems to be a challenging one to achieve unless proper monitoring, efficiency, transparency, accountability and proper executive planning are not ensured and addressed.

Hailing the 12 percent tax rate for all export-oriented industries like readymade garments, Parvez expressed his hope that this will flourish export which was a fulfilment of a long-standing demand of BCI.

But he expressed his concern over the increase of source tax on export from 0.50 to 1 percent which will have a negative impact on export in consideration of the present world situation.

“So, we propose to keep source tax as before. BCI appreciates the continuation of the cash incentive given on remittance income. He proposes to encourage remittance income by rescheduling the dollar price.

BCI president said inflation control is a key challenge. In budget, the government has recognised it which has been set at 5.6 percent while the current rate is 6.3 percent. But the budget does not give a pathway for that.

To control inflation the capacity of local industries should be enriched. In budget rate of per kg rice for the poor and low-income group has been fixed Tk 15 from Tk 10 which we propose to refix it as before.

BCI proposed to exempt VAT from raw materials import for the interest of enhancing efficiency of start-up entrepreneurs, micro and small industries and also urges to repeal VAT on all kinds of utilities.