‘Next budget will make businesses, common people happy’

Staff Reporter :
Businesses demanded specific direction in the forthcoming national budget to strengthen the competitiveness of the local industry amid the current challenging global economic situation.
They also demanded the opportunity to whiten black money by investing in housing sector, increase in individual tax-free income limit to Tk 4 lakh and for keeping supply of essential commodities out of the source tax.
The Federation of Chamber of Commerce and Industry (FBCCI) came up with the demands at the 43rd consultation meeting organized by the National Board of Revenue (NBR) and the FBCCI jointly at a hotel in Dhaka on Thursday.
Speaking at the meeting, Finance Minister AHM Mustafa Kamal said that the business community will be happy with the upcoming budget of FY 2023-24.
“The government has the sympathy to the people including the business community as they are providing a large portion of revenue, which contributes much to the development of the country,” he said.
He also appreciated the people’s excellent contribution to economic growth of the country overcoming several barriers including Covid-19 pandemic and Russia-Ukraine war.
“The budget will be prepared in such a way in future that we do not need to take any kind of loan as we are slowly moving towards becoming a developed country, where all facilities will be ensured for the citizens,” the finance minister said.
He further said, “We are on the dream ladder of 2041. Implementing the dream, we need cooperation from businesses and the upcoming budget will be people-friendly and for the welfare of the people”.
The finance minister expected that Bangladesh would emerge as one of the world’s 20 largest economies by 2031.
Placing a seven-point proposal for the upcoming budget, FBCCI President Md Jasim Uddin
said FBCCI thinks that it is necessary to maintain the opportunity to whiten black money by investing in housing sector without any question for 5 to 10 years considering the current situation.
“If the facility is kept for the next 10 years, the country’s economic growth will increase further,” he added.
He further said people are laundering a huge amount of money by taking the opportunity of ‘second home’ to different countries as the source of income is not questioned for buying a flat or apartment in there.
“In this reality, if the opportunity to invest undisclosed money in the country’s housing sector, many people will come under tax net,” the FBCCI president added.
Regarding the tax-free income limit, Jasim Uddin urged the government to raise the tax-free income limit for individual taxpayers to Tk 4 lakh from Tk 3 lakh in the next fiscal year considering the higher inflation and the overall economic situation.
He also urged NBR not to issue any Statutory Regulatory Order (SRO) without consulting the stakeholders as many SROs have remained unimplemented and dysfunctional.
The apex trade body also demanded exemption of source tax on the supply of essential commodities.
“Currently, 2 per cent withholding tax is applicable on the supply of rice, wheat, potato, onion, garlic, chickpea, pulse, turmeric, chili, maize, flour, salt, edible oil, sugar and all sorts of fruits. We propose for keeping supply of essential commodities out of the source tax,” the FBCCI president said.
In response to different issues raised by businesses, the NBR Chairman Abu Hena Md Rahmatul Muneem said the revenue board does not want to confine the tax-revenue in the legal frame, or file a case against the businesses.
“We are keeping the door open for negotiating any issue related to tax, and please come to NBR to solve the problems,” he added. He also urged the business people to provide tax and VAT as part of their responsibility to make a developed Bangladesh.
Abu Hena also urged businesses not to be frightened in facing the challenges of the LDC graduation issue rather it is better to improve adoption in technology and production of domestic industries.
He acknowledged that NBR did not get desired success in collecting retail VAT and taxes so far, but is trying to develop a smart system through reforming the total sector.