Reza Mahmud :
Businesses have showed mixed reactions over the proposed budget as several of those getting positive directions and some others found hardness in it.
“In one hand the budget constructed Annual Development Projects (ADP) for the sake of reducing government expenditures; on the other hand it has increase 6 per cent revenue budget which might hike inflations,” Ashraf Ahmed, former President of the Dhaka Chamber of Commerce and Industry (DCCI) told The New Nation on Tuesday.
Reducing services, logistic and material expenditures will make huge people unemployed and eventually it pushed those below poverty line. On the same time 6 per cent hiking of revenue budget will pose inflations which might create an anarchic situation in the national economy, he explained.
Meanwhile the business leader said, “Keeping the provision of adjustment of AIT for the next fiscal year is a great privilege for the businesses. The previous government has taken the AIT as complete seizures. Even if the tax become lower than the AIT, the previous governments were not pave way to adjust those, but this budget does such a good initiative.
Besides, several others have expressed optimisms over the proposed budget. When contacted, Md. Abu Sadeque, Managing Director of SS Group told The New Nation, “The proposed budget created burden on the businesses by increasing VAT from 7.5 percent to 10 pc. It is creating extra load to the common people who is the ultimate bearer of the VAT.”
He said the government had to sit with the business people before preparing draft of the proposed budget to make it more effective.
In a press release, DSE Chairman Mominul Islam conveyed his appreciation to Economic Adviser Dr Salehuddin Ahmed for proposing a budget he deemed supportive of the capital market.
According to Mominul Islam, measures such as the increased tax gap between listed and non-listed companies, the reduction in corporate tax rates for merchant banks, and the lower tax deducted at source (TDS) on share transactions are likely to benefit the market positively.
He further expressed optimism that future budget proposals would include initiatives like offloading shares of multinational companies where the government holds equity, listing profitable state-owned enterprises, and providing incentives to major domestic private firms to encourage public listings-steps he believes are crucial for revitalising the country’s capital market.
In a separate statement, the DSE Brokers Association of Bangladesh (DBA) also welcomed the proposed budget.
DBA President Saiful Islam noted that the TDS on securities transactions handled by brokerage firms has been proposed to decrease from 0.05 per cent to 0.03 per cent.
Additionally, he highlighted the proposed increase in the corporate tax differential between listed and non-listed companies from 5 per cent to 7.5 per cent, along with a 10-percentage point reduction in the corporate tax rate for merchant banks, bringing it down to 27.5 per cent.
“These proposals, once implemented, will significantly contribute to the progress and expansion of the capital market. They are expected to bring strategic advantages to all market participants-including domestic and international investors, issuer companies, brokers, and merchant banks,” said Saiful.
The DBA also expressed gratitude to the concerned authorities, commending the government’s apparent insight, intent, and constructive initiatives regarding capital market reforms.
In a press release on Tuesday, the Metropolitan Chamber of Commerce and Industry (MCCI) hoped that the proposed budget will play a significant role in providing financial stability and inclusive development.
The chamber expressed its willingness to work closely with the government to assist in budget implementation, particularly in ensuring transparency in tax administration, improving the business environment, and advancing economic reforms.
