The Federation of Bangladesh Chamber of Commerce and Industries (FBCCI) and the Metropolitan Chamber of Commerce and Industries (MCCI) have termed the proposed national budget as business-friendly against the backdrop of facilities to local entrepreneurs.
In a post-budget reaction, the FBCCI said the size of the budget has been increased in parallel to cope with the growing trend of economy towards the graduation of a developing country.However, the MCCI mentioned that the increase in tax on mobile financial service may create a negative signal among investors.
FBCCI President Mohammad Jasim Uddin said the expansion of social safety net will create a positive impact on the life of extreme poor groups amid the coronavirus pandemic.
The apex trade body has appreciated the increase in the allocation for power, energy and transport communications which, the businesses said, will make more contributions to infrastructural development through the public private partnership.
The FBCCI has recommended developing an integrated system for collecting the lofty target of revenue worth Tk 3.3 trillion, around 9.63 percent higher year on year, in the new fiscal year.
Regarding the dependency on local banks to address budget deficit, the apex trade body has requested the government to take fund from alternative foreign source instead of local financial institutions.
The government has targeted to take Tk 764.52 billion from banking system and Tk 320 billion from saving tools to meet the deficit of Tk 1.13 trillion.The FBCCI has welcomed the cut in corporate tax on different segment of business to promote local industries.
The MCCI has appreciated the reduction in tax on SME owned by women by way of increase of exempt annual turnover to Tk 7 million from existing Tk 5 million is a step in the right direction to enhance women's participation to sustainable development and economy as well as women's empowerment.
“Increasing their tax rate steeply at the time of the pandemic, and effectively disallowing a large portion of their promotional expenses will cause a slowdown of the growth of MFS services and send a wrong signal to investors and users alike amidst all the positive signals of the Budget,” reads the statement signed by MCCI President Nihad Kabir.
However, the trade body has urged the government to ensure access to finance for women-led cottage, micro and small industry to enjoy the full benefits of this provision and increase the size of their businesses.
Regarding the non-renewal of whitening facilities of black money, the MCCI expects that the government will reconsider its strategies for employment creation in a more specific way so that those who lost jobs during the pandemic can return to the job market soon.