The apex trade body at a post-budget press conference at the Federation Bhaban in Dhaka yesterday also advocated keeping intact the current duty structure in the next fiscal year's budget.

"Due to the enhancement, the duties on capital machinery or raw materials of 1600 items will be raised to 10 percent, which will ultimately have an adverse impact on the local industry," Mir Nasir Hossain, the FBCCI president, said, adding that the FY '08 budget would have been a 'realistic and complete' one, had the government paid heed to the trade body's recommendations on duty structure.

On the sugar prices that soared as an immediate effect of the proposed specific duty on the item, Hossain said usually the price should not be hiked, as the duty comes into effect next month.

He pleaded for stern measures against the traders involved with such an unusual price hike.

The FBCCI chief lauded the government move to take the liability of Bangladesh Petroleum Corporation's (BPC) loss of Tk 7,523 crore.

He, however, remarked that collection of a huge amount through bond in a span of one year might create an extra pressure on the economy.

"The government should extend this timeframe for collecting the money, instead of one year," Hossain suggested.

Pointing to the fact that the number of sick industries in the private sector is also big, the FBCCI president said the government should have earmarked a block allocation for rehabilitating such industries.

Hossain praised imposition of 45 percent corporate tax in general, and in particular 35 percent for the companies listed with stock exchanges. He said like cell phone operators, the non-governmental organisations should also be brought under corporate tax structure.

"There is a need to bring the NGOs under tax net considering their investment," he pointed out.

He thought that government announcement of off-loading shares of a number of companies from power, telecommunication and energy sectors will meet the requirement of good shares and further develop the capital market.

Demanding annulment of the provision of collecting Tk 1,000 from the traders by the city corporations for issuance of licences, the FBCCI chief said it is a burden, especially for the small and margin level businesses.

He also urged the government to give a second thought on the budget proposal that asked for withdrawal of zero duty on computer and computer accessories.

Hossain sought the facilities that are offered to the investors in the export processing zones (EPZs) also for other investors.

He said the target of achieving 7 percent GDP growth, increased allocation in the power sector, reduction in import duty on essentials including rice, wheat, edible oil, lentil, onion, peas and gram, withdrawal of industrial development surcharge, widening the tax net, withdrawal of advance income tax on credit card and raising duty on formalin and stearic acid are praiseworthy proposals.