The New Nation - Internet Edition

Staff Reporter

Bangladesh Chamber of Industries (BCI) has welcomed certain taxation and duty measures in the proposed budget but feared that the government would eat up the bulk share of banks' credit crowding out the private sector as the Finance Adviser has proposed a huge deficit budget.

The Board of Directors of BCI held a meeting at its office to discuss and evaluate the budget. The reduced size of ADP is also not a good sign, they said.

The BCI board said reduction of import duty on machinery and spare parts from 5 per cent to 2 per cent, basic raw materials from 10 per cent to 7 per cent, intermediary raw materials from 15 per cent to 12 per cent and VAT exemption for cottage industries will help industrial growth.

They praised Dr Aziz for proposing income tax exemption for SMEs of Tk 24 lakh or less turnover, handicraft export, Tk 2 lakh income from agriculture and women and aged people.