& çâÌæÚUæð´ ·¤è ¥ôÚU Îð¹Ùæ ÁæÚUè ÚU¹ð´ ¥ÍæüÌ ¥ÂÙð ÜÿØ ÂÚU ŠØæÙ ÚU¹ð´Ð ãæÚU Ù ×æÙð´, €UØô´ç·¤ ·¤æ× ·¤ÚUÙð âð ¥æÂ·¤ô ©gðàØ ·¤è Âýæç# ãôÌè ãñ ¥õÚU ÁèßÙ ·¤æ ¹æÜèÂÙ ÎêÚU ãôÌæ ãñÐ ÖÜð ãè ÁèßÙ ×ð´ ç·¤ÌÙè Öè ·¤çÆÙæ§ü €UØô´ Ù ¥æ°, çÁ™ææâæ ¥õÚU ©ˆâæã ÕÙæ° ÚU¹ð´Ð ŠØæÙ ÚU¹ð´, ÜÿØ ã×ðàææ ¥æÂ·Ô¤ Âæâ ãôÌð ãñ´ çÁ‹ãð´ ÂæÙð ·Ô¤ çÜ° ÂýØæâ ¥æÂ ·¤Öè Öè àæéM¤ ·¤ÚU â·¤Ìð ãñ´Ð

PROPOSED BUDGET FOR 2005-06 FISCAL YEAR

Businesses vent mixed reaction

STAR BUSINESS REPORT
Business chambers and associations yesterday expressed mixed reaction to the proposed budget for 2005-06 fiscal year.
The Dhaka Chamber of Commerce and Industry (DCCI) termed the proposed budget a positive and pro-poor one as it focuses on rural development and poverty reduction.
The chamber also hailed the budget for emphasis on vocational training and development of SME (small and medium enterprise), continuation of tax holiday, increase in income tax ceiling, farm subsidies, and allocation for rural infrastructure. Allocation for energy and power, supplementary duties to protect and develop local industries and allocation of funds for facing post-MFA situation are also welcomed by the chamber.
However, the DCCI criticised some other proposals in the budget. It criticised for increasing corporate tax from 37.5 percent to 40 percent for listed companies, retaining the customs duty of 7.5 percent for basic raw materials, raising of minimum income tax payable from Tk 1200 to Tk 1800. Imposition of similar customs duty on CBU (completely build up) and CKD (completely knocked down) motor vehicles and imposition of 35 percent supplementary duty on salt boulder and other salts from zero percent also came under criticism.
The chamber also observed that a specific allocation for establishing backward linkage industries to support RMG sector, capital market development and privatisation is needed.
AK Azad, president of Bangladesh Chamber of Industries, said it is impossible to achieve the revenue target of the National Board of Revenue with its present set-up.
He urged the finance minister to set import duty on raw material at zero. "It is not possible to survive after paying 7.5 percent tax on raw materials."
Tax difference between raw materials and finished products is 17.5 percent and it is not possible for local industries to survive with this gap, he said recommending for increasing the duty on finished products.
The Bangladesh Chamber of Industries welcomed the continuation of 5 percent cash incentive for the readymade garment sector and a US$40 million programme for its survival in the post-MFA period.
Saifuzzaman Chowdhury Javed, president of Chittagong Chamber of Commerce and Industry (CCCI), said the proposed budget will help flourish investment and industry as well as spur social development.
Barring some aspects the budget this year is fairly good, although it is prepared keeping the next general elections in mind, he added.
Javed thanked the finance minister for incorporating many of
CCCI proposals in the budget and hoped the government will implement those properly.
Chamber president complimented the minister for increasing allocation in communication, power, telecommunications, agriculture, education and health sectors.
“The enhancement of farm subsidy from Tk 600 crore to Tk 1200 crore will come to the great benefit of this important sector," Javed observed.
The Faridpur Chamber of Commerce and Industry welcomed the continuation of tax holiday, saying it will encourage investment.
Faridpur chamber also welcomed tax cut on mobile set and higher tax on SIM card.
Bangladesh Reconditioned Vehicles Importers & Dealers Association (Barvida) criticised the increase in customs duty on vehicles between 1500cc and 1649cc from 15 percent to 25 percent.
Bangladesh Jute Spinners Association hailed the proposed budget for putting emphasis on poverty reduction strategy paper (PRSP) which it said will create employment opportunity.
The association also appreciated the farm subsidy.
However, the association urged the finance minister to increase allocation in the power sector.