Budget lacks focus on private sector needs: Experts

The private sector has not received adequate attention in the proposed national budget for 2024-25 fiscal year, experts said at a roundtable on Saturday.
They also highlighted the lack of initiatives aimed at expanding industrialisation, diversifying exports, and boosting private investment and job creation.
They emphasised that without strict and proper monitoring of the commodity market, it would be impractical to control inflation just by providing tax exemptions on some essential products.
They also suggested that the National Board of Revenue (NBR) should expand its network to the grassroots level and strengthen its research wing, including industrial research, in order to enhance domestic resource mobilisation.
The experts made the observations at the roundtable discussion titled 'Reflections on National Budget 2024-25: Overview and Sectoral Perspectives,' jointly organised by Policy Exchange Bangladesh and SMAC Advisory and Services Limited at a city hotel.
Dr. M Masrur Reaz, Chairman of Policy Exchange Bangladesh, moderated the event.
Speaking at the event, Fazlee Shamim Ehsan, Vice President of Bangladesh Knitwear Manufacturers & Exporters Association, emphasised that the National Board of Revenue (NBR) should simplify the tax system to enhance domestic revenue mobilisation.
He pointed out the lack of clear directives for industrialisation in the budget and noted that non-revenue barriers are adversely impacting the business environment in the country.
Shamim Ehsan remarked, "The right to appeal after a 10 per cent miscalculation, down from previous 20 per cent, paves the way for greater accountability in the tax regime."
He, however, added that the compliance mechanisms and procedures remain a hindrance and called for further simplification of processes wherever possible.
A.F.M Asif, the CEO of Bengal Meat, praised the budget for its transparency and acknowledgment of inflation issues.
Highlighting that lower-income people spend 50 per cent of their income on essential commodities, he pointed out that the budget lacks directives for agricultural development.
He called for policy interventions to support the agricultural sector.
AKM Fahim Mashroor, CEO of Bdjobs.com, expressed gratitude to the government for providing three-year tax exemption facility for the ICT sector.
However, he noted that there is a lack of coordination between Bangladesh Bank and the NBR regarding the transition to a cashless economy.
Mr Fahim stressed that effective implementation of the budget requires better coordination between institutions like BB and NBR.
"Progression towards a cashless economy is a policy priority, and was rightly reflected in the latest extension of exemptions provided to IT sector with that condition," he said.
"Infrastructure support and interoperability are essential for effective transition, and further improvement will be necessary," he added.
Asif Ibrahim, Chairman of Chittagong Stock Exchange (CSE), said the budget presented was pragmatic and cognizant of economic realities.
The reduction in corporate tax is a positive step towards incentivising listings on the stock market, he said, adding that investment is crucial for the economy and investment and export-friendly tax policies are necessary to propel growth.
He also stressed the need for an effective bond market development.
Dr. M. Masrur Reaz, Chairman of Policy Exchange, emphasized that the budget should prioritise trade competitiveness, SME growth, targeted investment, and industrialisation.
He pointed out that these areas have received insufficient attention in the current budget.
Mr Reaz also highlighted the importance of export growth and diversification.
He argued that these aspects are crucial for the country's economic development and should be more prominently featured in the budget.
MA Reaz, Business Development Director of Expo Group, commented that the airport duty charges in Bangladesh are excessively high compared to neighbouring countries like India, resulting in lower export and revenue collection for Bangladesh.
He mentioned that this issue persists despite flagging this multiple times with the authorities.
Hasnat Alam, Senior Manager of Policy Exchange Bangladesh, gave a comprehensive technical presentation, highlighting the changes from both micro- and macro-economic perspective.
[email protected]

Mr. Alam's analysis provided a comprehensive overview, highlighting the potential challenges and key considerations.
Snehasish Barua, Managing Director of SMAC Advisory Services Limited, gave a comprehensive technical presentation. His presentation shed light on critical elements of the bill, offering valuable insights for business leaders and policymakers alike.
After the presentations, distinguished guests shared their remarks on the budget, leading into an open discussion.
Retired members of the National Board of Revenue Md. Farid Uddin, Md. Alamgir Hossain and Zakia Sultana were present as guest speakers.
[email protected]