Tax breaks ‘unlikely’ in upcoming budget, business barriers to be eased Finance Minister

Finance Minister Amir Khosru Mahmud Chowdhury said the government’s maiden budget will likely fall short of providing the tax breaks demanded by the business community during these “difficult times”.

Given the current economic situation, the government may not be able to offer significant tax benefits. However, the government would try to reduce the cost of doing business within the next three months, he expressed.

All exporting sectors would receive the same benefits currently enjoyed by the readymade garment industry. Bonded warehouse facilities and back-to-back letters of credit would be extended to all export sectors, he added.

He made the remarks at the 46th consultative committee meeting of the National Board of Revenue (NBR) at a hotel in Dhaka on Wednesday.

The Federation of Bangladesh Chambers of Commerce and Industry, Bangladesh’s apex trade organisation, was involved in organising the meeting.

When a business leader complained about a 40 percent rise in port duties, Amir Khosru responded that the claim was correct and that he also opposed the increase.

He questioned the basis for the 40 percent hike in port handling charges, saying there was no justification for it.

Khosru added that corruption at Chittagong Port and other ports adds to the cost of doing business, and urged stakeholders to report the issues so solutions could be provided immediately.

He also highlighted that if obstacles to business are reported to the government, they will be resolved within three months.

The minister said, “You tell me where you are being hindered in terms of ease of doing business. I am telling you, we will directly provide solutions within the next three months.

“Within three months. You bring it to us, tell us where and why your cost of doing business is increasing. We will address it. Wherever you being hindered in the ease of doing business, due to bureaucracy or various other reasons – we say, we will handle it in the next three months.” On tax relief, he added, “We will try. But I cannot promise today that we will be able to do much on taxes.”

“Two-year Cushion Needed’
The finance minister also said the economy will need two years of a “cushion” to recover from the current situation in which the current government has found itself and the war in the Middle East.

He said, “I have told all multilateral bodies, including the IMF and the World Bank, that we will need a two-year cushion. From where the economy of Bangladesh has been driven today, I will need a two-year cushion.

“And after these two years, the economy will turn around in the third year, In Sha Allah. The measures we are taking, I am listening to you – the economy will turn around in the third year.”

On the upcoming budget, he said a larger budget would be presented in the next fiscal year, with emphasis on quality investment in infrastructure.

However, he added that instead of unnecessary mega projects, priority would be given to effective and productive investments.