Taming inflation a big task: BCI

Budget reaction

FE Team | Published: June 18, 2022 22:14:08

FE REPORT
Hailing the proposed budget, Bangladesh Chamber of Industries (BCI) said on Saturday said coping with the inflation would be the biggest challenge in the next fiscal year.
"The proposed budget said about taming the inflation rate within 5.6 per cent in the upcoming fiscal year, albeit it hasn't defined any specific way forward," it said.
The trade body also said the higher GDP growth projected in the budget amid tough time is encouraging, however the government will have to face serious challenges unless it ensures good governance, transparency, competence, proper monitoring and devise befitting plans.
The trade body leaders came up with the feedback at a post-budget press conference held at its office in the city's Motijheel area, a statement said.
BCI President Anwar-ul Alam Chowdhury (Parvez), its former President Mostafa Azad Chowdhury Babu, Metropolitan Chamber of Commerce & Industry, Dhaka (MCCI) President Md. Saiful Islam, BCI directors and members attended the conference among others.
Speaking on the occasion, Mr Parvez said the BCI would like to express its gratitude to the government for its endeavour to propose a welfare budget amid various constraints like Covid and the Ukraine crisis.
Regarding the inflation, the BCI president said enhancing capacity of the local industries is essential for controlling the inflation.
"We reiterate our proposal to strengthen the rationing system for the poor for taming inflation," he said.
He said provisioning of over Tk 1.0 trillion from the country's banking system to meet the budget deficit would be an obstacle for the flourishment of the local industry.
He said the BCI believes that several other issues including increase in private investment, job creation, revenue deficit and financing in the proposed national budget would be very challenging.
"BCI thinks that in the current crisis of the world, squander of resources should be reduced in all cases. It is important to stop wastage and extortion at the stage of production, marketing and transportation of food products," he said.
Hailing the 12 per cent tax for all export-oriented business similar to that of the apparel sector, he said increase of source tax to 1.0 per cent from 0.5 per cent would leave a negative impact on export.
The BCI welcomed incentives on remittance.
It presented various recommendations for the next budget including digitalisation of tax regime, raising the tax-free income ceiling to Tk 0.4 million and fixing corporate tax between 10-15 per cent for the SMEs.
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