Businesses want incorporation of safe exit policy
Staff Reporter :
Expressing fear that many industries might be closed down due to the ongoing gas and electricity shortage, rise in bank interest rates, and escalating costs due to the increase in the dollar rate, businesses want safe exit policy in the upcoming budget for the fiscal year 2024-25 to quiet their business smoothly.
They also said many business entities are facing hurdles to survive due to the changing economic reality created by internal and external factors.
Taking into account the current high inflation rate, they further proposed increasing the individual tax-free income limit by Tk 1 lakh to Tk 4.5 lakh and for senior citizens and women to Tk 5 lakh.
Federation of Bangladesh Chambers of Commerce & Industries (FBCCI) President Mahbubul Alam came up with the proposals at the 40th meeting of the budgetary Advisory Committee organised by the National Board of Revenue (NBR) and the apex trade body at Sonargaon Hotel in the capital on Thursday.
In the meeting, several leaders of the different trade organisations also demanded withdrawal of Advance Income Tax (AIT) or adjustment properly and formation of a tax Ombudsman cell to reduce harassment.
FBCCI President Mahbubul Alam said, “Currently, there are around 1 crore Tax Identification Numbers (TIN) holders across the country.
But, approximately 35 lakhs TIN holders file their tax returns. So, those who have income above the tax-free limit, are required to file income tax returns.”
At the same time, the revenue board will have to take initiatives to expand the tax net with a view to reduce tax burden for the regular tax payers, Mahbub said.
The FBCCI president further said, “Discipline and good governance must be ensured in the country’s banking and financial sector.
FBCCI believes that the steps already taken by the government to reform the banking sector will be positive.”
Demanding to bring down the bank interest rate, he said, “The interest rate should be kept stable to survive in the competitive market and to increase investment in the country.”
Mahabub also said, “It is important to take effective steps to prevent money laundering. For that there must be political commitment.”
“Many claim that the state of ease of doing business is not good. So initiatives should be taken to make business easier,” the apex body chief added.
He further said there are major challenges in controlling inflation and market surveillance, foreign exchange reserves, remittance flows, increasing exports, adding new markets, increasing productivity, interest rates and financial and banking sector reforms, and coordination between monetary and fiscal policies.
Mohammad Ali Khokon, President of Bangladesh Textile Mills Association (BTMA), said, “Amidst the dollar crisis and the ongoing gas, power crisis, businesses are on the brink of collapse.
We urgently require an exit policy for traders to navigate the closure of industries.”
“Ultimately, our efforts revolve around bringing dollars into the country. However, if we cannot do business due to the obstacles, where will the government obtain its dollars?,” he added.
Mohammad Hatem, Executive President of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) emphasised the crisis in the export sector.
He said, “With the rising interest rates and the escalating dollar rates, banks are increasingly focusing on dollar transactions rather than supporting our businesses.”
Mentioning that businesses are unable to obtain fair prices for their export products, he said, “We are forced to accept orders below the cost of production.
This dire situation threatens the closure of numerous factories. For those of us facing potential closures, a secure exit policy is needed.”
Besides, he criticised the NBR’s tax policies, asserting that the current taxation system of the country is detrimental to investment and business.
