Business leaders and economists on Saturday stressed need for specific guidelines in the next budget for economic recovery
They also urged for making balance between revenue target and facilitating businesses for smooth functioning of trade and commercial activates as well as for the expected economic growth.
The observations were made in a pre-budget discussion FY2021-22, organized by Dhaka Chamber of Commerce & Industry (DCCI) in association with Samakal and Channel 24on Saturday, held virtually to outline the needs in the key macroeconomic avenues and roadmap of trade, industrial, investment recovery as well as turnaround of private sector from pandemic adversities.
Dr. MashiurRahman, Adviser to the Prime Minister on Economic Affairs and Chairperson, BRAC Dr. HossainZilllurRahman joined the discussion as special guests. DCCI President RizwanRahman chaired and moderated the discussion.
Dr. MashiurRahman, Adviser to the Prime Minister on Economic Affairs said that the growth should be inclusive. Economy needs to be widened all the resources should be utilized. For government, revenue target achieve without hampering economic activities is a priority.
He also suggested stakeholders to arrange budget discussions all the year round. Regarding tax regime he said it should be a business friendly one.
DCCI President RizwanRahman in his welcome address said that government will surely consider a business friendly, revenue friendly and industry friendly budget this year. And the budget will have a clear indication for the economic recovery amidst the pandemic time.
He also hoped that the next budget will have especial attention to taxation and VAT policy, infrastructure, industry and trade as well as financial sector. He also said that if the government with the help of vibrant private sector work hand in hand Bangladesh will be able to recover its economic momentum despite the pandemic.
Chairperson of BRAC Dr. HossainZilllurRahman said that the 2nd wave is going on and it may have a huge implication on the economy. The next budget should also have a plan of recovery as it was in the last year.
Moreover, social protection should get major concern in the next budget, he added. Revenue collection and achieving the target is inevitable for a budget at the same time government must consider incentives for the pandemic-hit the businesses specially the CMSMEs.
Disbursement of loan under stimulus for CMSMEs should be faster and in that case mobile financial services can be engaged as a delivery vehicle. For the growth trajectory, domestic market needs to be incentivized beside the export sector as the domestic economy will be a growth driver, ZillurRahman said.
Stakeholders from various sectors took part in the discussion. Among them Senior Partner, KPMG, AdeebHossain Khan addressed the issue of withholding tax and high corporate tax rate.
He also urged for a result oriented tax appeal system from the tribunal. Regarding VAT act he suggested to allow import rebate system. Member, Customs Policy & ICT, NBR Syed GolamKibria said from customs revenue target is about 1 lakh core taka. The budget will have a priority on agriculture sector.
CEO, IPDC, Mominul Islam urged for a long term bond market. Non-banking institutions are facing challenges now. He suggested to reduce corporate tax to 30% for NBFIs. Moreover he suggested for a 5-10 year term of duty structure for non-bank institutions.
CEO, Standard Chartered Bangladesh, NaserEzazBijoy strongly urged for easy access to finance to the SMEs. Incentives should be given for the export diversification.
He also urged to reduce tax rate for NRB bond.
Rahel Ahmed, CEO, Nagad suggested to incentivize the mobile financial services. There should be a micro merchant policy in the next budget.
Md. JashimUddin, Vice Chairman, Bengal Group of Industries said next budget should give incentives to the industry sector for employment generation. Moreover all the problems of tax, VAT, AIT, SD and Customs duty need to be solved.
Acting Editor, Daily Samakal, MustafizShafi in his concluding remarks said newspaper industry has to pay 37.5% corporate tax. The industry also pays 5% duty while importing newspaper. He thus wanted duty cut and reduction of corporate tax. He also thanked all for joining the event.