Proposed Budget For Fy15
Financing deficit from banks to hurt pvt sector loan: DCCI
The Dhaka Chamber of Commerce and Industry on Saturday observed that the dependency on the bank borrowing to meet the deficit in the proposed budget for the next financial year 2014-2015 might reduce the credit flow to the private sector.
In a statement, the chamber also requested the government to reduce corporate tax for all companies as the finance minister, AMA Muhith, announced corporate tax cut only for non-listed companies.
The DCCI recommended increasing tax-free income limit for individuals up to Tk 3 lakh considering the present socio-economic condition.
‘To meet the budget deficit, the proposed budget aims to borrow Tk 31,221 crore from the local banks. The DCCI thinks that it may curtail the credit flow to the private sector,’ it said.
Corporate tax rate for non-publicly traded company has been reduced to 35 per cent from the existing 37.5 per cent which the DCCI sees is a positive step.
‘But, the DCCI requests the government to reduce corporate tax for all,’ the statement added.
The trade body, however, welcomed the announcement of increasing tax holiday facility for the industries in the under-developed areas and reduction in advance income tax on profit from RMG products export to 0.30 per cent from 0.80 per cent and for other exporters to 0.60 per cent from 0.80 per cent.
It also hailed the government’s commitment to building Padma Bridge, setting up a tunnel under the River Karnafuli in Chittagong, elevating important highways into four-lanes, establishing deep sea port and LNG terminal.
The trade body said the steps would encourage the private sector.
The proposed budget gave importance to the development of small and medium enterprises that will boost the country’s GDP and the targeted growth 7.3 per cent would be achieved, the trade body observed.
The Bangladesh Exporters Association in a separate statement expressed concern over reduction of supplementary duty on garment product import and imposition of super tax at 30 per cent on individual income.
EAB president Abdus Salam Murshedy in the statement also demanded withdrawal of 1 per cent green tax on polluting industries, allocation of Tk 500 crore for enhancing workers skill and setting unified dollar rate against all export. He, however, appreciated the proposed budget saying that the proposals in the budget would be helpful to increase the efficiency of the export-oriented sectors.
-With New Age input
