The New Nation - Internet Edition

BSS, Dhaka

Dhaka Chamber of Commerce and Industry (DCCI) on Thursday urged the government to adopt a business friendly investment policy to reduce tariff burden on the entrepreneurs, encouraging them to pay taxes on time and helping rise in revenue collection.

Addressing a press briefing here, the DCCI leaders said the deficit in the new fiscal document was increased to 4.8 percent of the Gross Domestic Product (GDP) but it cannot be made up in reality unless the government raises revenue earnings by widening the tax net.

DCCI President Hossain Khaled presented a written statement with his opinion about the budget proposed recently by the Finance Adviser for 2008-09. DCCI senior vice-president Salahuddin Abdullah, vice-president Khandaker Shahidul Islam, director RA Khan and past president M Yunus also addressed the press briefing held at the DCCI auditorium.

Appreciating the government measures for introducing a four- tier tariff structure instead of three layers, the DCCI leaders said the proposal for reducing corporate tax rate, waiving income tax of turnover, raising tax holiday limit and extending it for new sectors, and facilities for the Small and Medium Enterprises (SME) would help the growth private sector to some extent.

They hailed the proposals for zero tariff on import of the items, not produced locally, but recommended incentives to develop an import substitute industry by supporting light engineering, ship building and other labour intensive sectors; encouraging food processing industry and reducing duty on electrical and electronic products.

The DCCI leaders, however, said that enhanced government borrowings from the internal sources to cover the budget deficit would have some problems for the banking sector. This will shrink credit growth of the banking sector, cause liquidity crisis, encourage rise in bank interest rates and reduce industrial growth, they observed.

They were also critical about reducing the allocations for development programmes in the new budget and urged the government to take effective measures for ensuring maximum implementation of the projects under the Annual Development Programme (ADP).

The DCCI leader praised the government for allocating Taka 16,932 crore in the social safety net, 2.8 percent of the GDP and 48 percent higher than the current year's stake, and suggested stringent monitoring to ensure benefit of the marginal and poor people in the rural areas.

They also urged the government for bringing transparency and accountability in the administration and the National Board of Revenue (NBR) for enhanced skill, efficiency and professionalism in these areas.