FBCCI welcomes 'rational' budget Seeks tax, AIT changes

Welcoming the proposed budget for FY 2024-25, Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) President Mahbubul Alam described it as "rational, realistic and achievable".
"While past budgets have seen increases of 10 to 12 per cent, this budget is only 4.2 per cent larger than the previous one," Mr Alam said at a press briefing at the FBCCI building in the capital. "This makes it more rational, realistic and implementable."
He said the budget could be implemented through collaboration between the government and private institutions. He also commended the government's prioritisation of national interests in the budget.
The FBCCI president viewed the target of reducing inflation from around 10 per cent to 6.5 per cent as achievable. "Inflation is a sensitive issue," he said.
"Essential commodities are currently facing inflation of 10.5 per cent, while other goods are at 10.6 per cent. However, the budget proposes bringing it down to 6.5 per cent," he said.
"I believe this is achievable if ambitious projects are shelved, ongoing projects are efficiently executed and overall implementation is proper," said the president of the country's apex trade organisation. The business leader, however, raised concerns about the unchanged tax-free individual income ceiling amid the near double-digit inflation. "We proposed an increase to Tk 450,000, but it remains at Tk 350,000," he said. "We urge the government to reconsider and raise it to Tk 450,000."
The trade body leader expressed concern about the target for bank borrowing to cover the budget deficit next year.
"If the government relies heavily on domestic banks to meet the deficit, it will restrict access to loans for businesses," he said, urging the government to explore more foreign borrowing options.
The FBCCI president called for the withdrawal of advance income tax (AIT) as a measure to improve ease of doing business in the country.

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