DCCI finds budget more positive than negative
Monday, 11 June 2007
FE Report
The Dhaka Chamber of Commerce and Industry (DCCI) Sunday in its budget reaction said the proposed budget has more positive elements than the negative.
According to the DCCI, the highest allocation of Tk 123.69 billion (12,369 crore) for education and technology, increase of the agriculture subsidy to Tk 15 billion from Tk 11 billion as well as allocation of Tk 3.5 billion as endowment fund for agriculture research, and increase of the total allocation for local government and rural development to Tk 74.74 billion are among the positive things in the budget.
The chamber body also said the increase in the allocation for energy and power to Tk 45.85 billion will help reduce the power shortage problem.
The chamber lauded the complete withdrawal of customs duty on crude edible oil and lentil and continuation of the duty-free facility for essential commodities like rice, wheat, onion, matar daal and gram (Chhola).
The DCC also said the customs duty on more than 40-seater CNG-run buses should be reduced to zero per cent to encourage use of natural gas instead of imported fuel for saving foreign exchange as well as reducing the transport cost.
However, it recommended that the lowest slab of customs duty should be restored to 5.0 per cent to keep a difference of at least 20 per cent between raw materials and finished products.
The DCCI said the 4.0 per cent infrastructure development surcharge (IDSC) might be retained on finished and consumer goods until the infrastructure of the country is developed well. It also suggested 2.0 per cent IDSC on intermediate goods instead of its complete withdrawal.
The chamber argued that the raw materials might be kept free from the IDSC.
It also said tax exemption may be provided in getting the ISO (International Standard Organisation) certificates.
It also said duty on stearic acid, a substitute for liquid paraffin, should be reduced to 5.0 per cent from 25 per cent.
The Dhaka Chamber of Commerce and Industry (DCCI) Sunday in its budget reaction said the proposed budget has more positive elements than the negative.
According to the DCCI, the highest allocation of Tk 123.69 billion (12,369 crore) for education and technology, increase of the agriculture subsidy to Tk 15 billion from Tk 11 billion as well as allocation of Tk 3.5 billion as endowment fund for agriculture research, and increase of the total allocation for local government and rural development to Tk 74.74 billion are among the positive things in the budget.
The chamber body also said the increase in the allocation for energy and power to Tk 45.85 billion will help reduce the power shortage problem.
The chamber lauded the complete withdrawal of customs duty on crude edible oil and lentil and continuation of the duty-free facility for essential commodities like rice, wheat, onion, matar daal and gram (Chhola).
The DCC also said the customs duty on more than 40-seater CNG-run buses should be reduced to zero per cent to encourage use of natural gas instead of imported fuel for saving foreign exchange as well as reducing the transport cost.
However, it recommended that the lowest slab of customs duty should be restored to 5.0 per cent to keep a difference of at least 20 per cent between raw materials and finished products.
The DCCI said the 4.0 per cent infrastructure development surcharge (IDSC) might be retained on finished and consumer goods until the infrastructure of the country is developed well. It also suggested 2.0 per cent IDSC on intermediate goods instead of its complete withdrawal.
The chamber argued that the raw materials might be kept free from the IDSC.
It also said tax exemption may be provided in getting the ISO (International Standard Organisation) certificates.
It also said duty on stearic acid, a substitute for liquid paraffin, should be reduced to 5.0 per cent from 25 per cent.