But, it is important to ensure honesty, transparency and efficiency in the budget implementation
The proposed budget for the fiscal year 2020-21 amid the Covid-19 crisis is business- and people-friendly, Mahbubul Alam, president of the Chattogram Chamber of Commerce and Industry (CCCI), has said in a media statement.
The budget will be helpful in the economic recovery of the country, he comments on behalf of the board of directors of the business association.
It is a timely one to maintain the continuity of development and, at the same time, to give impetus to the economy amid current circumstances, Mahbubul says in the release issued on Saturday.
However, it was important to ensure honesty, transparency and efficiency in the budget implementation, he said.
Mahbubul Alam further said increasing individual tax-free ceiling to Tk3 lakh, reducing minimum tax rate to 5 percent and lowering maximum tax rate to 25 percent from 30 percent would encourage taxpayers.
Furthermore, it was a timely decision to increase the time limit without penalty and interest for taxpayers who failed to file returns due to the epidemic, according to the release.
Mahbubul welcomed the government's allowing a scope to whiten undisclosed money and property by paying 10 percent tax.
The chamber president called upon all to take this opportunity to add the undisclosed money to the mainstream of the economy and help to resolve the country's liquidity crisis.
He also said as the advance tax on import of raw materials for local manufacturing industries was proposed to be lowered to four percent from five percent and as the concession period would increase from 2 tax periods to 4 terms, development to the domestic industry would take place.
Meanwhile, general people will be benefited ultimately from the proposal to cut source tax on supply of essential commodities like rice, flour, potato, onion, garlic, sugar, etc, and advance tax on import of garlic, sugar and raw materials for poultry feed.
The business leader also lauded the proposal of VAT exemption on import of power reaper, power tiller, rotary tiller etc in the agricultural sector.
Maintaining zero tariff on imports of fertilisers, seeds, pesticides etc and expansion of facilities to import agricultural machinery and equipment at a concessional tariff rate will be very beneficial for the current situation in the sector.
In addition, tariffs on onion imports would ensure a fair price for domestic growers, Mahbubul also said.
Meanwhile, an allocation of Tk10,000 crore to deal with Covid-19 which would play a very important role in combating the virus, he added.
Moreover, the local light engineering industry would be expanded after a concessional tariff on imports of materials used in the production in small and medium industries.
Low-cost loans will be disbursed among poor farmers, expatriate workers and trained unemployed for their self-employment in agriculture and agro-related production and services, small businesses, small and cottage industries etc, which will play a significant role in job creation, according to the statement.