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Tuesday | August 25, 2026 | Dhaka

Lower allocation for key mega projects worries FICCI

 New Nation
 Published: 12:00 AM, 11 June 2022

Business Desk :
The Foreign Investors’ Chamber of Commerce and Industry (FICCI) has raised concerns about the reduced allocation for some key mega projects in the proposed national budget for the fiscal year 2022-23.
The move will result in slowing the implementation of the projects as well as raise the total cost of the projects, according to FICCI.
“We feel instead of reducing the allocation in mega projects, the government could concentrate on enhancing the quality of spending, which could bring further efficiency as well as generate employment,” the apex chamber of multinational companies doing business in Bangladesh said in a statement on Thursday.
It also expresses concern about bridging the deficit from banking sources which may tighten the liquidity situation. Also, FICCI has said an entity is required to pay the Workers Profit Participation Fund (WPPF) as per the provision of labour law.
“It is not a dividend but rather an expense, a portion of which is also payable to the government. It is an expense not at the discretion of the company but a compulsion. Moreover, an individual is required to pay tax on it for an amount exceeding Tk 50,000. Disallowing such a legitimate business expense will increase the tax burden of the compliant businesses,” FICCI said.
“No significant changes have been made in section 56 of the ITO, 1984 except for bandwidth and other payments. The current TDS rate in section 56 is extremely high which should have been rationalised.” “Considering the overall existing macroeconomic scenario and increasing inflation rate, we feel the tax ceiling for individuals should have been increased, which has not been changed for the last two fiscal periods,” FICCI said. The budget proposed amnesty on the declaration of foreign assets in tax return by paying tax at different rates. “We do not encourage this kind of amnesty, but as the finance minister mentioned to bring the undisclosed money from abroad back to the country to shore up reserves as a reason we appreciate.