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Withdraw proposed changes in VAT Act: FBCCI


Published : 27 Jun 2020 09:28 PM | Updated : 07 Sep 2020 10:50 PM

The Federation of Bangladesh Chambers of Commerce and Industries (FBCCI) Saturday demanded withdrawal of proposals made in the fiscal year 2020-21 (FY 21) budget to bring about changes to the VAT Act The apex trade body said the implementation of new provisions in the VAT law will hurt small businesses as they are already weakened due to the Covid-19 pandemic.

"The proposed changes in the VAT Act are designed to address one per cent big businesses in the country, not the major smaller enterprises," FBCCI President Sheikh Fazle Fahim said while speaking at a virtual press meeting on the proposed national budget for FY21.

He said that if it has become too late to withdraw the proposed changes in the VAT law, then the National Board of Revenue (NBR) can amend it through a circular after the budget. Mr Fahim alleged that banks are showing reluctance to provide loans to cottage, small and medium enterprises under the government-announced stimulus packages.

The FBCCI president also said that the FBCCI will not recommend any willful loan defaulter for loans under the stimulus packages.

Fahim said soon after the government had announced the stimulus package, the FBCCI urged the government so that the bank may not fall under pressure. 

The liquidity situation of banks was not going normal that’s why Bangladesh Bank, as part of it’s ‘Stimulus 50-50 Fund’ and modernization of financial system, the most CMSMEs who are excluding the client relations of banks may get the facilities.  

He said the stimulus credit implementation easing process is ongoing, following which the stimulus credit holders have been given 3 years installment facility as per the circular of central bank.

“ FBCCI has given guidelines to its District chambers and businessmen of all associations and those who are not members or individual entrepreneur, women entrepreneur, shop owner, they are under process to include as provisional members free of charges so that they can get the facilities”, Fahim added.

A fund of more than Tk 2,000 crore has been allocated in Probashi Kalyan Bank, Youth development Bank, Palli Sanchya Bank and Polly Karmasangsthan bank so that the job less people, individual entrepreneurs, returned NRBs, and helpless farmers can avail support from those organisations.

He said FBCCI is also helping the deserving businessmen through setting a helpline, also sent guidelines to all the concerned chambers and associations in this regard.  

FBCCI Directors, business leaders, and senior officials concerned at the FBCCI headquarters attended the press conference while newsmen took part mostly through online in the conference.