NBR: Upcoming budget to be investment-friendly

NBR Chairman Md Nojibur Rahman has said the upcoming budget would be pro-people and investment-friendly. “The budget is going to be more business-friendly. This time it will be production-oriented as well,” the NBR chief said while addressing a pre-budget meeting with the Chittagong Chamber of Commerce and Industry (CCCI) on Sunday. The CCCI organised the view-exchange meeting at Bangabandhu Conference Hall of World Trade Centre in the city. “We have received a number of directives from Prime Minister Sheikh Hasina for the upcoming budget. We would like to assure you that the forthcoming budget will protect local industries,” Nojibur said, adding that they would continue to give incentives to the export-oriented industries. The revenue boss noted that the upcoming budget would specially focus on generating employment in the country. Referring to the new VAT law which is going to be effective from July 1, he said it would be much more business and investment-friendly. “Now we are making a list of tax waiver. The new VAT law will be implemented protecting the interest of general people. With the implantation of new law, there will be scope of giving incentives to different sectors,” said the NBR Chairman. “There are some flaws in the VAT Act 1991. The new Vat law will be online-based,” said Nojibur. Replacing the existing VAT Act 1991, the VAT and Supplementary Duty Act 2012 has been framed at the prescription of the International Monetary Fund (IMF). The new VAT law envisages a flat 15% value added tax rate, replacing different VAT rates now in force for goods and services. While placing recommendations for the national budget for Fiscal Year 2016-17, Mahbubul Alam, on behalf of the CCCI, proposed to fix the Vat rate at between 7%-10%. Airing his grievances over the VAT rate at 15%, the trade body leader said: “The VAT rate is too high and it has an adverse impact directly on the national price level. The VAT rate is comparatively low in other countries.” Mahbub also called for construction of Bay Terminal without further delay to enhance the capacity of Chittagong Port. Pointing to the perennial water-logging problem of the port city, the CCCI president said the traders of Chaktai-Khatunganj wholesale market incurs astronomical losses every year due to water congestion. “Chaktai canal is considered the lifeline of the city as it is the main drainage of all rainwater of the city along with the usual sewage outlets,” said the CCCI president. The canal, however, has now become choked with solid waste and filth, he added, calling for an allocation of special fund in the upcoming budget to protect the century-old business hub.