Chamber leaders welcome budget

Leaders of chambers and trade bodies continued to welcome the proposed budget as they found most proposals to be business-friendly.
Dhaka Chamber of Commerce and Industry (DCCI) praised the proposal to extend the tax holiday period to 10 years from seven years.
The chamber also appreciated the move to cut tax to 3 percent from 5 percent on the earnings from cash incentives for exports.
The fund flow to the private sector may become constrained by Finance Minister AMA Muhith's proposal for bank borrowing of Tk 31,221 crore to fix budget deficit, DCCI said.
The chamber welcomed the move to set high allocations for mega infrastructure projects such as Padma bridge and the tunnel under the Karnaphuli river in Chittagong.
Economic growth has been projected to reach 7.3 percent in the year starting July 1. “If the target is achieved, economic advancement will get a momentum,” DCCI said in a statement.
The Exporters Association of Bangladesh said the duty exemption on the import of prefabricated building materials and fire safety equipment would help the sector grow and improve safety standards.
However, only the tax holiday option cannot attract adequate investment, the EAB said. The exporters' association also urged the government to set up five product-based export processing zones, introduce a uniform dollar exchange rate, and build the deep-sea port.
In a separate statement, Bangladesh Textile Mills Association urged the government to withdraw 0.30 percent minimum tax as such a tax on the primary textile sector is measured on annual assessment.
BTMA also urged the government to withdraw the 3 percent tax at source on opening local LCs for purchasing raw materials. “We are demanding withdrawal of all kinds of taxes on the earnings from cash incentives on exports.”