Improvement in governance, monitoring necessary to attain budgetary goals: FICCI
Saturday, 9 June 2007
FE Report
The Foreign Investors' Chamber of Commerce and Industry (FICCI) has termed the proposed budget for fiscal 2007-08 an ambitious one and said further improvement in governance and monitoring would be necessary to achieve the budgetary goals.
"The proposed budget of Tk 871.4 billion, which is 30.38 per cent higher than that of last fiscal is ambitious and we feel that it will require further improvement in governance and strong monitoring to achieve the goals," the FICCI said Friday in its reaction to the budget for fiscal 2007-08.
It appreciated the measures, especially in the social, education, communication and health sectors as these have been proposed in line with the Millennium Development Goals (MDG). Attainment of the MDGs will also benefit the foreign investors in Bangladesh, it added.
The FICCI hailed the interim government for abolition of special tax facility for investment in real state and motor vehicle, abolition of the deduction of tax at source on credit card bill, enhancement of tax-exempted income limit, introduction of 'Universal Self Assessment Procedures'.
It appreciated complete withdrawal of customs duty on crude edible oil and lentils, continuation of duty free benefit on essential commodities and lifesavings drugs Elimination of existing complexities of VAT laws relating to contract manufacturing, reduction in penal provision, simplification of VAT challan, it added.
But the FICCI expressed its discontent over huge increase in non-development expenditure and widening of budget deficit, high dependence on bank borrowings as well as foreign aid to meet the deficit and enhancement of customs duty and supplementary duty leviable mostly on raw and intermediate materials. However, the cost acceleration of locally manufactured products caused by said increase cannot be mitigated by the withdrawal of IDSC, it said.
The chamber also expressed its dissatisfaction over withdrawal of zero duty facility on import of textile machinery and computer and computer accessories and segregation of mobile phone sector and raising of tax rate at higher level.
Besides, the proposed budget has not addressed some recommendations of FICCI that include allowance of the actual royalty and technical know-how expenses in line with the Board of Investment Guidelines, reduction in corporate tax rates, tax holiday benefit for expansion unit, assessment of import consignment on the basis of CRF value, reduction of duties on other essential commodities including milk powder, to restore the coverage of Central registration up to manufacturing activities, simplification of VAT price declaration procedure.
"We feel, the proposed budget with necessary amendments would help achieve its targeted goals," FICCI pointed out.
The Foreign Investors' Chamber of Commerce and Industry (FICCI) has termed the proposed budget for fiscal 2007-08 an ambitious one and said further improvement in governance and monitoring would be necessary to achieve the budgetary goals.
"The proposed budget of Tk 871.4 billion, which is 30.38 per cent higher than that of last fiscal is ambitious and we feel that it will require further improvement in governance and strong monitoring to achieve the goals," the FICCI said Friday in its reaction to the budget for fiscal 2007-08.
It appreciated the measures, especially in the social, education, communication and health sectors as these have been proposed in line with the Millennium Development Goals (MDG). Attainment of the MDGs will also benefit the foreign investors in Bangladesh, it added.
The FICCI hailed the interim government for abolition of special tax facility for investment in real state and motor vehicle, abolition of the deduction of tax at source on credit card bill, enhancement of tax-exempted income limit, introduction of 'Universal Self Assessment Procedures'.
It appreciated complete withdrawal of customs duty on crude edible oil and lentils, continuation of duty free benefit on essential commodities and lifesavings drugs Elimination of existing complexities of VAT laws relating to contract manufacturing, reduction in penal provision, simplification of VAT challan, it added.
But the FICCI expressed its discontent over huge increase in non-development expenditure and widening of budget deficit, high dependence on bank borrowings as well as foreign aid to meet the deficit and enhancement of customs duty and supplementary duty leviable mostly on raw and intermediate materials. However, the cost acceleration of locally manufactured products caused by said increase cannot be mitigated by the withdrawal of IDSC, it said.
The chamber also expressed its dissatisfaction over withdrawal of zero duty facility on import of textile machinery and computer and computer accessories and segregation of mobile phone sector and raising of tax rate at higher level.
Besides, the proposed budget has not addressed some recommendations of FICCI that include allowance of the actual royalty and technical know-how expenses in line with the Board of Investment Guidelines, reduction in corporate tax rates, tax holiday benefit for expansion unit, assessment of import consignment on the basis of CRF value, reduction of duties on other essential commodities including milk powder, to restore the coverage of Central registration up to manufacturing activities, simplification of VAT price declaration procedure.
"We feel, the proposed budget with necessary amendments would help achieve its targeted goals," FICCI pointed out.