CHATTOGRAM, June 06: Both the Chittagong Chamber of Commerce and Industry (CCCI) and the Chittagong Metropolitan Chamber of Commerce and Industry (CMCCI) welcomed the proposed budget for the next fiscal year, praising its "pro-people and business-friendly".
The Chittagong chamber appreciated the budget's focus on investment through reduced tax rates, calling it a budget for "life and livelihoods".
In a post-budget reaction on Thursday, CCCI President Omar Hazzaz lauded the budget's alignment with building a "Smart Bangladesh" by attracting foreign investment and creating IT jobs.
He applauded the establishment of an engineering college in Chattogram to develop skilled technical manpower.
Mr Hazzaz commended the government's plan for 110 business-facilitating reforms across the country, urging swift implementation of the National Logistics Policy recommendations.
Hazaz said inflation is the "biggest headache" in the current economic situation, as it is eroding the purchasing power.
He commended the budget proposal on reduction in bank/financial institution tax on import LCs for daily necessities from 2 per cent to 1 per cent.
Mr Hazaz viewed the conditional tax rate reduction for private companies and one-person companies as positive for investment growth and job creation. He also applauded the three-year proposed cashless operation for IT-based organisations as a step towards a Smart Bangladesh.
However, he expressed concern about the increased tax rates on construction bricks, fearing a negative impact on project costs and the industry as a whole.
The Chittagong Metropolitan Chamber of Commerce and Industry (CMCCI) also welcomed the budget, praising its focus on development and people's welfare. CMCCI President Khalilur Rahman expressed gratitude to the government for its pro-people and pro-development approach.
However, Mr Rahman cautioned about the ambitious revenue collection target of Tk 4800 billion for the National Board of Revenue (NBR) without proper anti-corruption measures.
He warned that increasing allocations for foreign debt interest payments while reducing subsidies and incentives could lead to a higher cost of living.
Despite these objections, he appreciated the increased allocations for key sectors like transport, communication, health, power and education, without raising taxes on existing taxpayers or institutions.
The CMCCI president proposed a complete waiver of the applicable source tax on exports to support the country's vital garment industry.
While welcoming the budget's inflation target of 6.5 per cent, Mr Rahman called for support for domestic industrial production, especially in textiles, to reduce import dependence and protect foreign exchange reserves.
He advocated for responsible borrowing from both domestic and foreign sources to manage the budget deficit.
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