Experts: Budget lacks focus on private sector’s needs. The private sector has not received adequate attention in the proposed national budget for FY25 fiscal year, according to experts at a roundtable on Saturday.They also highlighted the lack of initiatives aimed at expanding industrialization, diversifying exports, and boosting private investment and job creation.
They emphasized that without strict and proper monitoring of the commodity market, it would be impractical to control inflation just by providing tax exemptions on some essential products.They also suggested that the National Board of Revenue (NBR) should expand its network to the grassroots level and strengthen its research wing, including industrial research, to enhance domestic resource mobilization.
Experts: The budget lacks focus on the private sector’s needs
The experts made the observations at the roundtable discussion titled “Reflections on National Budget 2024-25: Overview and Sectoral Perspectives,” jointly organized by Policy Exchange Bangladesh and SMAC Advisory and Services Limited at a city hotel.
M Masrur Reaz, chairman of Policy Exchange Bangladesh, moderated the event.Speaking at the event, Fazlee Shamim Ehsan, vice-president of Bangladesh Knitwear Manufacturers & Exporters Association, emphasized that the NBR should simplify the tax system to enhance domestic revenue mobilization.
He pointed out the lack of clear directives for industrialization in the budget and noted that non-revenue barriers are adversely impacting the business environment in the country.Shamim Ehsan remarked: “The right to appeal after a 10% miscalculation, down from previous 20%, paves the way for greater accountability in the tax regime.”
AKM Fahim Mashroor, CEO of BDjobs.com, expressed gratitude to the government for providing a three-year tax exemption facility for the ICT sector.Fahim stressed that effective implementation of the budget requires better coordination between institutions like BB and NBR.
“Progression towards a cashless economy is a policy priority, and was rightly reflected in the latest extension of exemptions provided to the IT sector with that condition,” he said.
Asif Ibrahim, chairman of Chittagong Stock Exchange (CSE), said that reduction in corporate tax is a positive step towards incentivizing listings on the stock market, adding that investment is crucial for the economy and investment and export-friendly tax policies are necessary to propel growth.
M Masrur Reaz, chairman of Policy Exchange, emphasized that the budget should prioritize trade competitiveness, SME growth, targeted investment, and industrialization.Reaz also highlighted the importance of export growth and diversification.Snehasish Barua, managing director of SMAC Advisory Services Limited shed light on critical elements of the bill, offering valuable insights for business leaders and policymakers alike.
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