ZCZC
BSS-56
BUDGET-DCCI-REACTION
Post-Covid economic recovery focused in budget: DCCI
DHAKA, June 11, 2020 (BSS) – Hailing the proposed budget for the fiscal 2020-21,Dhaka Chamber of Commerce and Industry (DCCI) President Shams Mahmud today said the proposed budget is a progressive and high growth targeted one, which is appreciable.
“The budget has focused GDP growth of 8.2 percent and inflation of 5.4 percent,” he said in his initial reaction regarding the proposed national budget for the fiscal 2020-21, said a press release.
He said the budget is an inclusive one despite it is a huge expenditure budget which aims to increase investment, stimulus to the entrepreneurs and ensure social safety net.
“But to implement this huge budget is a big challenge, therefore, we need to re-consider revenue collection target,” he added.
He said NBR revenue collection target is Taka 3.30 lakh crore which is 9.82 percent higher than the previous fiscal.
“To attain this high target, NBR needs to widen its tax net, pending tax collection, strengthening manpower in the upazila level for more tax collection. But the tax burden should not be imposed on the existing tax payers,” he added.
Shams Mahmud said deficit budget is Taka 1.90 lakh crore which is 6 percent of GDP. “To tackle the economic challenges, this deficit budget should be utilized for the basic needs of the people,” he added.
He said the government will borrow Taka 84,980 crore from the banks which is 3.10 percent higher than the previous fiscal and allocation in the ADP is Taka 2,05,145 crore.
He recommended allocating more in the health sector under ADP considering the Covid situation.
He suggested cutting corporate tax a bit so that entrepreneurs may sustain in post-covid situation. “Corporate tax has been slashed to 2.5 percent for non-listed companies in the private sector,” he added.
Shams Mahmud thanked the government for increasing time limit of paying tax and vat without penalty. “But 0.5 percent tax on annual turnover of taka 3 crore for an individual businessman will increase his cost of doing business,” he added.
Shams Mahmud welcomed the government for giving stimulus to the industries.
He requested to give advance income tax waiver and waiver of advance tax on RMG, leather, jute and jute goods and agro-processing sector.
“Due to lower export order, DCCI President said source tax on RMG export from 0.25 percent to 0.5 percent will make the sector challenging,” he added.
He requested to consider and reduce source tax on RMG export and welcomed the decision of 1 percent cash incentive to RMG export.
He also welcomed the government to give Taka 20,000 crore stimulus to the MSME sector.
He hailed the decision of allocation of Taka 95,574 crore for social safety net programme.
BSS/PR/KUC/RY/22:02 hrs