The New Nation - Internet Edition

Staff Reporter

Finance Adviser Dr Mirza Azizul Islam yesterday agreed to reconsider some budgetary proposals, as the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) requested him.

A delegation of the Apex business body led by its president Annisul Haque called on the Finance Advisor at Finance Ministry and placed some proposals including further duty cuts on raw materials and allowing unquestioned investment of undisclosed money.

The FBCCI said customs duty on raw materials should be reduced to 5 per cent from the proposed 7 per cent and the taxable ceiling of the small enterprises' annual turnover should be fixed at Tk 50 lakh in place of the proposed Tk 24 lakh.

The finance adviser assured the business leaders to consider the proposals after discussion with the National Board of Revenue (NBR).

"FBCCI leaders welcomed the new budget with some suggestions, which I'll consider after consulting the NBR," Dr Aziz told reporters after the meeting.

He said, "FBCCI raised the issue of administrative complexity, revenue impacts and I've assured them of looking into the matters."

Later at a press conference Annisul Huq said the new budget is business-and investment-friendly. The caretaker government has taken some measures in the budget as suggested by the FBCCI, which would have positive impacts on business and investment.

The FBCCI president noted that the budgetary measure extending the tax holiday until 2011 and introduction of a 4-tier duty structure would promote business.

Agreeing with exporters' observation that the budget has failed to pay due attention to export promotion, the apex- chamber president said, "We recognise their concerns and the government should look into the matter." He also demanded the withdrawal of one-per cent indemnity duty on capital machinery import. Annisul Huq said the 30 per cent deficit to be a "major challenge" for the government in implementing the fiscal measures. Some Tk 13,000 crore would be borrowed for deficit financing resulting in squeezed credits for private sector, increased bank interest rate and inflation.

"We think this will definitely affect the economy as it will put a pressure on banking sector, and there might be a liquidity problem."

Defending the FBCCI recommendation for allowing the undisclosed money to be invested in manufacturing sector, Annisul Haque said if there is a package of 10 per cent tax for such money, it would give a boost to the industrial sector.

He said the existing system for whitening the legally earned undisclosed money would not discourage much the businesspeople.

Emphasising creating political stability in the country, the FBCCI president said, "It's good to see the government's negotiations with political parties moving forward."

He said a political stability is imperative for the sake of implementation of the budget, worth Tk 99,962 crore-the biggest recipe ever for the nation.