FE Report
Bangladesh Chamber of Industries (BCI) on Saturday expressed a mixed reaction to the proposed budget for fiscal year (FY) 2018-19.
Problems in the banking sector, impasse in investment and lack of employment are the key challenges for the government to implement the budget, it said.
The BCI called the government for executing the infrastructure projects in the energy and communication sectors for faster development.
Strong state monitoring is a must to ensure quality, it said emphatically.
However, the BCI believes the proposed budget will help achieve targets of social safety net, energy, infrastructure, communications, education and health.
It will also help ensure women entrepreneurship, strengthen rural economy and attain sustainable development goals (SDGs).
The BCI said increased allocations for social welfare and monthly allowances, communications, energy, education and healthcare sectors will help improve the country's socio-economic conditions.
The trade body gave the mixed bag of negatives and positives on the budget at a meeting in its boardroom.
BCI President Mostafa Azad Chowdhury Babu chaired it.
It said 33 per cent revenue collection target in the proposed budget is not realistic and will cast a negative impact on the productive (industrial productivity) sectors.
It also proposed that the government contain the revenue growth target at 15 per cent.
The BCI requested the state mechanism to withdraw VAT on local bread-biscuit and shoes factories and other export-oriented industries.
It said imposition of advance VAT on information technology (IT)-based services and also at the import level in the budget will cast a negative impact.
The trade body also called upon the government to allow Tk 0.35 million (Tk 3,50,000) as tax-free income.
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