Budget business-friendly but not export-friendly: BMCCI
Wednesday, 16 June 2010
FE Report
Bangladesh-Malaysia Chamber of Commerce & Industry (BMCCI) leaders Tuesday termed the announced budget for the fiscal year 2010-11 'a business-friendly but not export-friendly budget,".
Speaking in a post-budget press conference in the capital, Chamber president Syed Moazzam Hossain said there are many chances in the proposed budget that would increase cost of production due to imposition of taxes.
"We appreciate the proposal for prioritising the allocations for power, energy and transportation sectors as they are prerequisites for the country's development but it is not at all ambitious in consideration of the country's 160 million people," he said.
The BMCCI chief criticised the increase of Value Added Tax at both retail and wholesale level sales and Advanced Trade Vat on all imported items. These will increase the cost of commodities which will ultimately fall on the general consumers, he commented urging the government to continue the existing rates.
Mr Hossain pointed out there is a provision in the budget for Tk20 billion (2000 crore) as incentives for the exporters. On the other hand, tax has been increased from 0.25 per cent to 1.0 per cent on the total export value of knitwear and oven garments, which will totally discourage exports.
He, therefore, suggested taxes on garments for export should not be raised.
The BMCCI also slated the proposed 15 per cent tax on house rent for commercial use, calling it 'not justifiable at all'. The association also called illogical the proposal for increasing VAT at manufacturing level to 20 per cent from 10 per cent.
Bangladesh-Malaysia Chamber of Commerce & Industry (BMCCI) leaders Tuesday termed the announced budget for the fiscal year 2010-11 'a business-friendly but not export-friendly budget,".
Speaking in a post-budget press conference in the capital, Chamber president Syed Moazzam Hossain said there are many chances in the proposed budget that would increase cost of production due to imposition of taxes.
"We appreciate the proposal for prioritising the allocations for power, energy and transportation sectors as they are prerequisites for the country's development but it is not at all ambitious in consideration of the country's 160 million people," he said.
The BMCCI chief criticised the increase of Value Added Tax at both retail and wholesale level sales and Advanced Trade Vat on all imported items. These will increase the cost of commodities which will ultimately fall on the general consumers, he commented urging the government to continue the existing rates.
Mr Hossain pointed out there is a provision in the budget for Tk20 billion (2000 crore) as incentives for the exporters. On the other hand, tax has been increased from 0.25 per cent to 1.0 per cent on the total export value of knitwear and oven garments, which will totally discourage exports.
He, therefore, suggested taxes on garments for export should not be raised.
The BMCCI also slated the proposed 15 per cent tax on house rent for commercial use, calling it 'not justifiable at all'. The association also called illogical the proposal for increasing VAT at manufacturing level to 20 per cent from 10 per cent.