Businesses and economists have suggested that the existing weaknesses in the national economy be repaired through information technology, including making holding tax mandatory in the e-Tin process. At the same time, they advised to bring this potential sector in parallel with the garment sector.
This was suggested during a pre-budget discussion on ‘National Budget 2022-2023’ organized by Bangladesh-Malaysia Chamber of Commerce and Industry (BMCCI).
The meeting was chaired by BMCCI President Syed Almas Kabir at Gulshan Club in the capital on April 9 and was attended by Kamran T. Rahman; Abul Qasim Khan, former president of the Dhaka Chamber of Commerce and Industry (DCCI); Shahadat Hossain, Executive Director of the American Chamber of Commerce in Bangladesh; MA Riaz, Vice President, France Bangladesh Chamber of Commerce and Industry (CCIFB); Golam Mostafa, Senior Vice President, Italy Bangladesh Chamber of Commerce and Industry (IBCCI); Md. Moin Uddin Majumder, Senior Vice President, Bangladesh German Chamber of Commerce and Industry (BGCCI); Md. Shafqat Matin, President of France Bangladesh Chamber of Commerce and Industry (CCIFB); Tahrir Aman, President of the Nordic Chamber of Commerce and Industry in Bangladesh; ATM Azizul Akil David, Senior Vice President, Bangladesh-China Chamber of Commerce and Industry; Founder Chairman of the Policy Exchange of Bangladesh Dr. M Mashroor Riaz, Syed Moazzam Hossain, Syed Nurul Islam, former president of BMCCI Md. Alamgir Jalil and Rakib Mohammad Fakhrul presented their views on the upcoming budget as nominated negotiators.
Welcoming the gathering, Syed Almas Kabir said that Bangladesh and the world economy have now fully restarted after the last two years of restrictions due to the Covid-19 pandemic and this confirms the dream for Bangladesh regarding domestic demand, employment and most importantly the possibility of restructuring. Strong exports and remittances have led to external sector activities as well. Our local economies, as well as the world, have potential inflation instability in the European economy due to high inflationary pressures, logistical and supply chain disruptions, and the Russian-Ukrainian conflict.
In light of such a challenging context, the presence of the forthcoming budget and the important opportunity for policy makers to change fiscal policy and allocate resources in a way that helps Bangladesh to make good use of the emerging opportunities in its position. And at the same time, address the disability of the world.
Referring to the current situation in Sri Lanka, he said the two economies are different, and the direction of export and development is different. Our foreign debt is low, which is about 17 percent of our GDP. However, the gap between our exports and imports remittances versus our imports and external remittances such as debt repayment is narrowing sharply. He also mentioned the BDT 40,000 crore we have spent on vaccines. Therefore, due to the limitations of the upcoming budget is very important for Bangladesh.
To review the matter, Syed Almas Kabir requested the Chairman of Chittagong Stock Exchange PLC (CSE) and former President of Dhaka Chamber of Commerce and Industry (DCCI) Asif Ibrahim for his keynote address.
Asif Ibrahim thanked BMCCI for organizing such an important discussion on the forthcoming budget on behalf of all the joint chambers. He said the NBR has set up pre-budget discussions with various chambers, associations, policy makers and various stakeholders and is considering their recommendations for formulating the next budget.
Due to Covid-19 pandemic, GDP fell 3% last year. The GDP is expected this year to reach more than 7% due to the improvement in the overall situation. About 5 million people have been laid off in the last two years. He suggested in the next budget to take appropriate measures to give back jobs to these people.
“As a result of the transition to LDCs, due to proper preparation, it could have an impact on our exports,” he said. Various incentives have to be given to increase export earnings. He said that in March 2022, the country had exported a record amount of 4.6 billion dollars. Remittance has increased to 15.29 million dollars. The total income has been 44 billion dollars. The government has set a target of 7.5 percent of GDP for the fiscal year 2022-23. The World Bank says growth is good and could reach 7.9% of GDP at this time.
However, the problems in collecting taxes need to be addressed to reduce foreign dependence. Because individual taxpayers are not showing property tax properly. So the loopholes must be repaired with the help of information technology. The economist suggested holding district-based tax collection and facilitating the business environment, including making holding tax mandatory in the e-Tin process.
He hopes the government will help reduce foreign dependence by raising the bond source tax by 10 per cent. Investment in the capital market needs to be increased. The rate of corporate tax in the budget is still much higher than in neighboring countries. Therefore, it is necessary to make arrangements to increase investment in infrastructure.
The NBR’s capacity also needs to be enhanced and negotiators focus on various issues in the forthcoming budget to ensure that traders are not harassed.
Kamran T. Rahman, senior vice-president of the Metropolitan Chamber of Commerce and Industry said the government was in the process of increasing gas prices, which would affect business if not rationalized. He said emphasis should be laid on the SME sector and recommended removing various barriers to business. He also emphasized training for skill development.
Abul Kashem Khan, former president of DCCI (Dhaka Chamber of Commerce and Industry), said he had recommended the government to reduce taxes in various areas considering the overall situation. He said the government would not give everything; that’s why the private sector is needed. A good project is needed. The project has to be taken up through public-private partnership.
Shahadat Hossain, Executive Director of the American Chamber of Commerce in Bangladesh; France Bangladesh Chamber of Commerce Vice President MA Riaz; Golam Mostafa, Senior Vice President, Italy-Bangladesh Chamber of Commerce; Moin Uddin Majumder presented their speeches.
Prominent economist Dr. M Masroor Riaz strongly recommended to give impetus to the internal economy. He also emphasized the need to consider new entrepreneurs who do not know the government’s incentives.
Former President of Bangladesh-Malaysia Chamber of Commerce and Industry Syed Moazzem Hossain, Syed Nurul Islam, Architects M Alamgir Jalil and Rakib Mohammad Fakhrul spoke on the program. ATM Azharul Akil David, Senior Vice President, Bangladesh-China Chamber of Commerce and Industry and Mohammad Safkat Matin, President, France-Bangladesh Chamber of Commerce and Industry also spoke. In his speech, he emphasized on implementation rather than budget formulation.