AdminOn behalf of
the Foreign Investors' Chamber of Commerce and Industry (FICCI), we would like
to express our sincere gratitude to the Honorable Prime Minister and Finance
Minister for presenting the national budget 2023-24 in these difficult times.
Following are the Chamber’s assessments:
The proposed budget aimed for a GDP growth of
7.5% and an inflation rate of 6% for the upcoming fiscal year. FICCI believes
the proposed targets are challenging however, if achieved, it will bring in
momentum in the economy. The projected Annual Development Programme (ADP) of
Tk. 2,63,000 crore is targeted to continue facilitating quick recovery of the
economy despite different external challenges.
The Chamber appreciates increase in allocation
in power & energy sector. However, allocation for the health, agriculture,
and educational sectors does not seem to be adequate. We feel that Government
should concentrate on enhancing the quality of spending, which could bring
further efficiency as well as generate employment. It also expresses concern
about bridging the deficit from banking sources which may further tighten the
liquidity situation.
The Chamber appreciates the following
proposals, made in the proposed budget:
· We welcome increase of initial threshold for
tax-free income by Tk 25,000 to Tk 50,000 for different classes of assesses.
However, considering the high inflationary trend, this may not be adequate.
· Introduction of environment surcharge for
owning multiple motor cars is a nice initiative for protecting the environment.
However, corporate should be excluded as they would need multiple vehicles for
its operation.
· The Chamber welcomes the decision to enact a new Income Tax Act 2023 if it includes reformation aligning with vision 2041 of smart Bangladesh. At this stage Chamber can not comment on the details as it has not been made available in today’s budget session. However, Chamber expects an English version of the Income Tax Act 2023 will be made available simultaneously for review of the foreign investors.
Apart from the above, Chamber has the
following concerns, which has not been addressed in the proposed budget 2023:
· In order to enjoy
a preferential corporate tax rate of 20% provision of cash transaction limit
based on expenditure incurred by a company has not been addressed and floating
shares through IPO only has not been amended to include RPO.
· Chamber request for rationalizing the
definition of input in line with the global best practice has not been
addressed.
· There is no new incentive for local industry
development however, government has imposed additional VAT for some local
manufacturer e.g. smartphone manufactures, software development and
customization, etc.
· Chamber’s concern on customs duty valuation
process in line with the Customs Valuation Rules, 2000 has not been
addressed.
About FICCI
The Foreign Investors’ Chamber of Commerce & Industry (FICCI) is the apex chamber of more than 200 multinational companies and foreign investors from thirty-five (35) nations across the globe in more than Twenty-one (21) sectors in Bangladesh. As a key economic partner of Bangladesh, FICCI has been working closely with the Government, through streamlining and enabling cross-border trade and investment, disseminating useful research-driven market intelligence and through supporting regulation that benefits its membership.
For any clarifications regarding the above, kindly get in touch with:
T.I.M
Nurul Kabir
Executive
Director
Foreign
Investors’ Chamber of Commerce and Industry (FICCI)
Mobile No: +880 1711-563977, TnT No: +8802222271610,
+8802222271611
Fax:
+8802222271609
Email: info@ficci.org.bd,
Website: www.ficci.org.bd
