The Foreign Investors' Chamber of Commerce and Industry (FICCI) has said the implementation of the proposed budget of Tk464,573 crore for FY2018-2019 is highly challenging in comparison to the estimated growth of the outgoing fiscal year.
The proposed budget of Tk464,573 crore, which is 25% higher than that of revised budget for the last fiscal year, is challenging in comparison to the estimated 17% growth in the proceeding year, the FICCI said in a statement issued on Friday.
The GDP growth target of 7.8% for FY2018-19 is achievable only if the GDP-investment ratio can be increased, reads the statement signed by FICCI Executive Director Jamil Osman.
The chamber also expressed its concern over a number of proposals made in the new budget and demanded necessary amendments in this regard.
“The chamber appreciates the notable allocation for skill development. The chamber also expresses concern over the utilization of revenue to replenish the deficit of state owned enterprises and state owned commercial banks,” the statement reads.
Praising the proposed reduction of the corporate tax rate for banks and financial institutions by 2.5%, the FICCI recommended similar reductions in the tax rate for other sectors.
Other recommendations by the FICCI include calls for the withdrawal of the provision for taxing dividend on multiple income sources, and the extension of the limit of allowable perquisite to Tk550,000.
Another area of concern identified by the FICCI is the provision making employers liable for the submission of income tax return statements by employees, as this may lead to the harassment of transparent buyers, the statement read.
The FICCI also recommended the withdrawal of supplementary duties on locally manufactured products as opposed the the widening of the SD base as proposed in the budget for FY2018-19.
Furthermore, the FICCI appreciated the road-map created by the government to lay the foundation for a Digital Bangladesh, but said the increase of the VAT rate to 5% for super shops and the imposition of the same rate on e-commerce sites would increase inflation and discourage the growth of businesses in these sectors.