MONEY LEGALISATION
Scope should be for productive sectors, not for housing: FBCCI
The Federation of Bangladesh Chambers of Commerce and Industry on Wednesday demanded withdrawal of the scope of legalising undisclosed money through investing in real estate sector and sought the facility for productive sectors. At a post-budget discussion meeting, the FBCCI, the apex trade body of the country, also expressed its fear that the government’s excessive dependence on bank borrowing for deficit financing could create problems for the private sector in getting loans.
The FBCCI organised the meeting at Dhaka Officers Club auditorium where business leaders from different chambers and associations took part. Finance minister AMA Muhith was present as chief guest.
FBCCI president Kazi Akram Uddin Ahmed said, ‘Although the government has been providing the opportunity of legalising untaxed money for years, very insignificant amount of such money has been legalised. So it is time to stop the source responsible for generating such money.’
He said that the government proposed to provide the scope of legalising untaxed money in housing sector in the next budget for the fiscal year 2013-2014. But the FBCCI thinks that it is important to withdraw the facility for investing in purchasing land and apartments and provide the scope for investing in productive sectors.
The money can be used in industrial production, infrastructural development, setting up economic zones and in the capital market, he said.
The government will need to depend heavily on bank borrowing to finance the 4.6 per cent deficit budget and it might create problem for businesses in getting bank loan, Akram said.
Private investments will increase if the government reduces its bank borrowing, he added.
Akram, also a member of ruling Awami League’s advisory council, hailed the government for taking initiative for signing TICFA with the US saying that it would help boost investment of the US in Bangladesh and retain and widen GSP facility for Bangladeshi products.
Muhith, however, said that some proposals including withdrawal of the scope of legalising undisclosed money in housing sector were needed to consider and he took note on them.
He said the revenue collection target of Tk 1,36,090 crore set for the next fiscal year was achievable. ‘It is not ambitious, rather it is conservative,’ he said.
‘The revenue collection target is not ambitious. But one thing is…….political stability and whatever projections and ideas given in the budget are based on a basic premise that political stability will remain in the country. So nothing is here to discuss on the issue and I hope everyone will follow the right path for ensuring political stability,’ Muhith said.
National Board of Revenue chairman Ghulam Hussain also said that the target
of revenue collection was achievable if proper environment was ensured.
‘Give us the right atmosphere. Then we will prove that the target of revenue collection is not ambitious. It is possible to collect even Tk 1,50,000 crore or more if we work together,’ he said.
The FBCCI also placed some proposals including reduction of duty in import of capital machinery to 1 per cent from the proposed 2 per cent, withdrawal of minimum tax on companies irrespective of profit or loss and making effective the alternative dispute resolution mechanism for expediting revenue collection.
FBCCI first vice-president Monowara Hakim Ali, vice-president Helal Uddin, former FBCCI president Akram Hossain, former vice-presidents Kamal Hossain, Md Jashim Uddin and Abul Kashem Ahmed, Bangladesh Merchant Bankers Association president Mohammad A Hafiz and Bangladesh Furniture Exporters Association president KM Akhtaruzzaman, among others, spoke at the meeting.
-With New Age input
