DCCI hails budget

Dhaka Chamber of Commerce & Industry (DCCI) Saturday welcomed the announcement of increasing tax holiday facility for the under-developed areas from 7 years to 10 years. The DCCI in its reaction on the proposed budget also hailed the proposal which allows any donation or contribution in the government fund for natural calamities or disaster will be treated as CSR activities. Reduction of advance income tax on profit from RMG products export to 0.3% from 0.8% and advance income tax on profit from other exports to 0.6% from 0.8% were also hailed by the chamber. DCCI said these proposals will encourage export sector. The proposed budget recommends for tax exemption on interest income from investment on pensioner savings certificates and wage earners’ bond. DCCI welcomes this initiative. Income tax rate for non-publicly traded company has been reduced to 35% from 37.5% which DCCI sees is a positive effort. Besides, DCCI urged for reducing all other corporate taxes. To meet up the budget deficit, the proposed budget aims to borrow Tk. 31,221 crore from local banks. DCCI thinks that it may curtail the credit flow to the private sector. Proposed budget has targeted Annual Development Plan (ADP) of Tk. 80,315 crore which was Tk. 60,000 crore in the revised budget of the last fiscal year. DCCI urges upon the government to implement the targeted ADP. DCCI welcomed government’s commitment of development of infrastructure like building Padma Bridge, setting up a tunnel under Karnafuli River in Chittagong, elevating important highways into four-lanes, establishment of deep sea port and LNG terminal. DCCI is of the opinion that these commitments will encourage the private sector, according to a statement of DCCI.