Easy VAT law needed for economic development : FBCCI

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TV24 DESK: The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) has urged the government to ease the value added tax or VAT law for the sake of the country’s economy.

The FBCCI, the country’s apex trade body, came up with the request on the proposed budget for the fiscal year 2021-22 in a press conference held at its Motijheel office in Dhaka on Saturday.

“We request the government to form a task force involving the finance ministry, the National Board of Revenue and the FBCCI to simplify the VAT law,” said Md Jashim Uddin, president of the FBCCI.

He, however, welcomed the overall budget, which according to him will boost investment and business activities as well.

FBCCI Senior Vice President Mostofa Azad Chowdhury Babu, vice presidents MA Momen, Md Amin Helaly, Md Habib Ullah Dawn, Salahuddin Alamgir, MA Razzak Khan and directors, among others, were present at the press conference.

The size of the national budget has been widening in proportion of increasing demand of people and economic infrastructure.

the challenges of implementing the budget are ensuring good governance, proper monitoring, investment and achieving the desired goal of revenue collection by increasing production and adopting business friendly management, the FBCCI president observed.

Upgradation of administrative and executive skills, transparency, accountability and proper management are imperative for ensuring spontaneous development in these segments, he said.

Jashim Uddin said the government, in the proposed budget, has widen the scope of the social safety net programme which will reduce unemployment rate and income fall of people due to the adverse impact of Covid-19 and such budgetary initiatives will play a significant role in achieving the target of the government.

The budgetary allocation in power and electricity and communication infrastructure sector will help strengthening investment, industrialisation and new job creation.

Claiming that the Public Private Partnership (PPP) will also help in these sector, he urged the government to pay a special attention to the PPP.

He also requested the government to take help from the special local bond with low interest rate and foreign source instead of bank loan to meet the deficit of the budget.

In his budget analysis, Jashim Uddin recommended fixing minimum tax rate at 0.25 percent for all business establishments to boost the businesses.

Earlier, the FBCCI urged the government to withdraw the existing five percent Advance Income Tax (AIT) but the proposed budget recommended imposition of 20 percent AIT, he said.

“We are calling upon the government to withdraw the AIT in the final budget as we are not sure whether we will be able to generate profit from our businesses at the end of the year,” Jashim Uddin said.

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