Proposed budget frustrates FBCCI

Federation of Bangladesh Chambers of Commerce and Industry president Abdul Matlub Ahmad on Friday termed the proposed budget for the fiscal 2016-17 a complex one which did not address any of the demands of the apex chamber.
Matlub made the comment while speaking at a press briefing on the budget which was placed in parliament on Thursday.
‘The proposed budget is a complex one and lofty in terms of size,’ the FBCCI president said.
Although the government refrained from implementation of VAT Act, it has created scopes to take huge taxes from businesses, he said.
‘It would be difficult for the government to collect taxes and VAT from the business people if the levies are imposed oppressively,’ Matlub said.
Matlub said FBCCI would rethink of giving budget proposals to the government in the next year if it found no reflection of its proposals in the budget.
‘We have pointed out seven proposals to the government but none of them was reflected in the budget proposal.
‘New taxes were imposed on the small entities which will affect their business,’ he said.
‘There is no meaning of giving such proposals rather than we should concentrate on business,’ he said.
‘It has been observed that the budget has become lofty in size that will resulted in increased revenue collection target meaning business people will have to pay higher taxes,’ the FBCCI president said.
Proposals of a number of industries and sectors including hybrid cars, gold, iron, e-commerce, small and medium enterprises remained unaddressed in the budget, he said.
A significant number of associations and chambers of FBCCI have expressed their dissatisfaction over the proposed budget, Matlub added.
Speaking about the existing ‘black money’ whitening process, he said, ‘We do not support black money whitening process and always oppose the process. But at the same time government has to prevent money laundering from the country as around US$ 9 billion has already been laundered in last year.
‘Government has to device mechanism so that such money can be kept within the country,’ Matlub said.
Speaking about the 1.50 per cent tax at source on exports, FBCCI first vice-president Md Shafiul Islam Mohiuddin termed such tax as abnormal and absurd.
He said government tax should be on profit, not at source. Exports will collapse it such taxes are imposed, he said.
A number of federation members at the briefing opposed enhanced package of VAT as the government increased it to Tk 28,000 from existing Tk 14,000.
FBCCI, however, said that they will give their full analysis over the proposed budget based on FBCCI members’ observations after 7 days.