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Next budget to address recession: NBR chief

UNB, Dhaka
The government will design the next budget keeping in mind the preparations for coping with the impact of the worldwide recession.
"The world is going through an economic turmoil; none is out of this recession. The next budget will address the ways to tackle the recession,” National Board of Revenue (NBR) Chairman Muhammad Abdul Mazid said yesterday at a prebudget meeting with the stakeholders of oil, gas, food and beverage and cigarette sectors.
As a new government is in
power, the NBR chief said, the next budget will reflect their planning and incorporate their pro-development and pro-people welfare-oriented philosophy in the 2009-10 fiscal budget.
The NBR chief also said the budget would identify the basic needs of the people of the country and would facilitate the manufacturing and production of those basic needs.
The local industries would get a level playing field in the next budget, he assured.
Emphasising increasing the tax net, Mazid said the government is in a move to
expand the tax net, not the tax base.
He urged all capable people of the country, including the businessmen, to pay taxes and contribute to development activities of the country.
Bangladesh Auto Biscuits and Bread Manufacturers Association President M Shafiqur Rahman Bhuiyan urged the government to include the imported biscuits in the luxury category to facilitate flourishing of the local biscuit manufacturers.
"The quality of the local production is not inferior to the imported items,” he said.
Bhuiyan proposed reduc-
ing the import duty from 25 percent to 5 percent on flavours, malt extract, seasoning oil and biscuit wrappers, which are used in manufacturing biscuits.
Bhuiyan demanded a reduction in the VAT on locally-manufactured biscuits from 15 percent to 5 percent.
Bhuiyan also put emphasis on the enhancement of supplementary duty on import of biscuits, breads and bakery items to 200 percent or impose tariff value $2 per kilogram.
Jalal Uddin from the manually manufactured biscuits sector asked for
total waiver of VAT from all bakery items, including biscuits, bread and cake.
Manzur Ahmed from the Federation of Chambers of Commerce and Industry (FBCCI) said it is only in Bangladesh where the imports of food items are much easier.
"NBR can impose supplementary duty on the import of food items, which are produced in the country," he said.
Faisal Mahbub of Oil and Lubricant Importers Association demanded reduction of specific import duty on mono-grade lube oil, which is now $ 1,100 a tonne.