Business leaders said that the dual approach to the private and public sectors created a policy imbalance, and they called for a more harmonised fiscal strategy regarding the sectors’ expenditures.
They said that, to tackle inflation, the government often turns to contractionary policies for the private sector while continuing expansionary spending policy for the public sector.
They spoke at a pre-budget discussion titled ‘Live pre-budget discussion: private sector perspective’, organised by the Dhaka Chamber of Commerce and Industry in cooperation with Samakal and Channel 24 in the capital on Sunday.
Abdul Awal Mintoo, former president of the Federation of the Bangladesh Chambers of Commerce and Industry, said that during inflation, the private sector was frequently burdened with tighter credit conditions while government expenditures continued unabated.
This mismatch weakens the overall effectiveness of inflation-control measures.
He also said that government organizations must stop publishing fabricated data, which has been common for the last 15 years.
‘If production decreases and increases through putting pen on paper, then what is the need to increase production? The government and governmental institutions must accountable to the people,’ he added.
He also urged the National Board to widen tax nets to relieve the current taxpayers.
‘We want NBR should spend its 80 per cent energy to chase the non-taxpayers rather than harassing the compliant taxpayers for more tax,’ he added.
In his speech, NBR Chairman Abdur Rahman Khan said that there is no scope for further reductions in corporate and income taxes as these will further decrease the government’s revenue collection.
He, however, said they will try to resolve the obstacles businesses face.
‹The sectors that have been getting tax exemptions for a long time will have to pay equal taxes like others, there will be no discrimination. At past, the rate was even more high, like 60 per cent or more, which has been reduced to 20 per cent-30 per cent,’ he added.
He also said that a system has been developed for taking tax holidays, and the government exempts the amount of tax that it collects, which should be stopped.
He also said the board is considering introducing a uniform tax rate for all sectors nationwide to eliminate disparities. All taxable incomes will be taxed.
However, the business leaders in the garments sector opposed the uniform tax.
Former Commerce Minister Amir Khasru Mahmud Chowdhury urged the government to take effective and supportive tax policies to ensure investment expansion.
Former FBCCI President Mir Nasir Hossain suggested an inclusive, business-friendly, investment-friendly, timely, and pragmatic budget for the next fiscal year.
He also said he would focus on the country’s infrastructure and eliminate the complexities in the industrial sector.
Bangladesh Knitwear Manufacturers and Exporters Association President Mohammad Hatem said that if the government provides warehouse facilities to the importers, they will be willing to import more cotton from the US to reduce the trade gap.
He also urged manufacturers to focus on producing high-value products and urged the government to provide policy support.
Rizwan Rahman, former President of DCCI, said that Bangladesh›s private sector is not ready for the LDC graduation in the current geopolitical and economic situation. Therefore, the government should consider making this crucial decision very carefully.
Regarding the recent US imposition of tariffs on Bangladesh’s exports, International Chamber of Commerce President Mahbubur Rahman urged the government to take the initiative to negotiate by forming a task force with representatives of the private sector, including DCCI.
The speakers urged for a reasonable revenue target, a single VAT rate, and automation of overall revenue management.
The speakers also recommended deferring the LDC graduation, ensuring uninterrupted gas and power supply to industries, developing infrastructure, and ensuring good governance in the financial sector.
DCCI president Taskeen Ahmed presented the keynote while editor of Samakal Shahed Mohammed Ali gave concluding remarks.
Business leaders from the country’s different trade bodies also spoke at the event.
