Businesses should reduce reliance on subsidies

The NBR chairman urged businesses in Rajshahi to reduce their reliance on subsidies as such a tendency contradicts the country's aspiration to become a developed nation by 2041.

"The extensive reliance on subsidies is incompatible with Bangladesh's goal of becoming a developed nation," said Abu Hena Md Rahmatul Muneem, chairman of the National Board of Revenue (NBR).

"As we progress towards our graduation to a developed nation by 2041, the international community expects us to move away from subsidies. So, the government will naturally remove the subsidies gradually," he added.

Muneem, also a senior secretary of the Internal Resources Division, made these comments while addressing a daylong pre-budget discussion with the business community of Rajshahi at the auditorium of the Rajshahi Chamber of Commerce and Industry (RCCI) on Wednesday.

In the discussion, the business leaders argued subsidies are crucial for industrial growth in the region, which is less developed compared to the eastern part of Bangladesh.

RCCI Vice President Sultan Mahmud proposed expanding the tax base instead of imposing new taxes in the next budget.

In reply, the NBR chairman said: "A developed nation thrives on its capabilities, its ability to fight odds and survive. So, shift away from your mindset of seeking subsidies while taking up business ventures."

The number of return submissions doubled and the number of VAT registrations increased by 2.5 times in the last four years, Muneem said.

Chaired by RCCI President Masudur Rahman Rinku, the discussion was attended by businessmen and chamber leaders from Rajshahi, Chapainawabganj, Naogaon and Bogura.

Abdul Awal, an RCCI member, said many talented entrepreneurs are failing to proceed with their ventures for a lack of funds and information.

Mozdar Shafiqul Islam, president of the Rajshahi chapter of the National Association of Small and Cottage Industries of Bangladesh, demanded removal of taxes and VAT on products.

Abdul Wahed, president of the Chapainawabganj chamber, demanded infrastructural development of Sonamasjid land port and the newly reintroduced Sultanganj riverport.

He also demanded establishment of a land port alongside Rohonpur railway port in Chapainawabganj to strengthen business connectivity with Nepal and Bhutan.

A businessman of Chapainawabganj demanded removal of duties on fruit-bags for supporting mango cultivation.

Mahfuzul Islam Raz, vice president of the Bogura chamber, said the district fetches around Tk 50 crore worth of foreign exchange by exporting crude oil, hair and caps.

He sought an easier procedure for payments of taxes and VAT.