CHITTAGONG, June 6: Budget implementation with a deficit of Tk 675.52 billion for the fiscal year (FY) 2014-15 would be a big challenge for the government, said Chittagong Chamber of Commerce and Industry (CCCI) president Mahbubul Alam.
He, however, said the government's move to withdraw the source tax on the local L/Cs (letters of credit) ushers in hope that it will make businesses move in the right direction instead of remaining stagnant.
In an instant and preliminary reaction Mr Alam said the prices of essential commodities like potato, onion, garlic, gram, pulse, ginger, spices, rice, wheat, atta, flour, salt, edible oil, sugar etc will come down as source tax on these items has been withdrawn. Priorities given to human resource development, overall agriculture sector, energy and electricity and communication will play a very vital role in the economic development.
"But it is essential to give clear guidelines for enhancing investment. Considering the impact of inflation the tax-free individual annual income limit should be raised from Tk 0.22 million to Tk 0.25 million," he said.
Withdrawal of VAT (value added tax) fully on the kidney dialysis solution to ease cost of kidney treatment in the country is a very welcome proposal in the budget, he said.
Withdrawal of 15 per cent supplementary tax on the filament lamp produced locally will immensely benefit the common poor people.
He said the tax rate reduced on non-publicly traded companies from 37.5 per cent to 35 per cent should be further reduced to 30 per cent, he added.
Meanwhile, Chittagong Metropolitan Chamber of Commerce and Industry (CMCCI) president Khalilur Rahman thanked the government for placing the Tk 2.5 trillion fiscal budget setting the country's economic growth target at 7.3 per cent.
He said implementation of such a large budget is challenging for the government. Good governance, putting an end to political conflict and politics of understanding are pre-conditions for full implementation of the budget, he said. The National Board of Revenue (NBR) has been given the target to realise taxes worth Tk 1.50 trillion which will have an overall negative impact on the livelihood of common people unless new taxpayers are created, he said.
He emphasised enlargement of the tax net for realising the target of additional taxes. At the same time he urged the government to withdraw the burden of additional taxes on the existing taxpayers.
Mr Rahman said uninterrupted electricity and gas supply to the industrial zones developed in Dhaka, Chittagong and Khulna should be ensured side by side with creating an atmosphere of good governance so that local and foreign investors are attracted to create more jobs and new taxpayers.
Budget encouraging for entrepreneurs: CWCCI
President of Chittagong Women Chamber of Commerce and Industry (CWCCI) Mrs Quamrun Malek has lauded the proposed budget saying it will encourage the industrialists and entrepreneurs.
In her reaction to the budget she said new employments will be generated if new industries are set up. The proposed budget will benefit industries directly and indirectly as tax on export has been fixed at 3.0 per cent.
The tax-free annual income limit for women has been fixed at Tk 0.275 million which is truly beneficial for them. Lump allotment for women entrepreneurs will also create a greater environment for them, she said.
Mrs Malek, however, demanded a specific plan to be incorporated in implementation of the allotment.
She expressed hope that the tax rate enhanced on the rich will encourage common people to pay tax.
Budget implementation a big challenge: CCCI
Our Correspondent | Published: June 07, 2014 00:00:00 | Updated: November 30, 2026 06:01:00
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