IBFB demands additional funds for social, services sectors

FE Team | Published: June 15, 2007 00:00:00 | Updated: February 01, 2018 00:00:00

FE Report
The International Business Forum of Bangladesh (IBFB) has demanded additional allocations in budget and policy supports for developing the social and services sectors to achieve the projected 7.0 per cent GDP growth.
While appreciating the provision of creating a special fund for the SME sector, enhancement of allocation for power generation, simplification of the self-assessment system for tax payment and corporate tax rebate to encourage mobile phone companies to enter stock market, in a statement it laid emphasis on long-term policy support for achieving the expected growth.
The statement, signed by its president Mahmudul Islam Chowdhury, said the government needs a long-term plan to raise and encourage investment in the tourism sector.
The tourism sector has tremendous potential to generate employment scopes and help earn valuable foreign currency.
"The government can immediately identify the potential tourist spots and outsource those to the private sector under a build-operate-transfer agreement," said the IBFB in the post-budget reaction.
The forum appreciated enhancement of allocation for agriculture research but emphasised on a strong monitoring system so that the targeted people can benefit from the subsidy.
Terming some proposed budgetary measures challenging, the IBFB said the new budget shows elements aimed at safeguarding the poor.
It said the proposals of duty withdrawal on import of rice, lentils, edible oil, wheat and other essential would help control the inflation.
However, it suggested a strong market monitoring mechanism to keep prices of essentials stable in the local market
The IBFB that appreciates abolition of the provision of whitening black money expressed concern over the proposed increase in customs duties on industrial raw materials.
"The duty structure may threaten local industries and encourage imports while local textile products risk losing competitiveness and there might be a negative impact on the ICT growth," it said.