Businesses call for long-term trade, investment policy
The FBCCI president further suggested increasing the tax-free limit to Tk4.5 lakh
Business leaders have emphasised the need for a long-term government policy on trade and investment to attract both local and foreign investors to invest in the country.
"This policy should be for a minimum of five years," Mahbubul Alam, president of the Federation of Bangladesh Chambers of Commerce and Industries (FBCCI) commented at a post-budget panel discussion at a city hotel on Monday (10 June).
At the event, organised by the American Chamber of Commerce in Bangladesh (AmCham), he said "Many local and foreign investors will not be interested in new investments without a long-term plan. Without a long-term policy, businessmen cannot plan properly, resulting in losses."
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He also highlighted the need for a hassle-free tax and VAT system and urged the private sector to take an active role in implementing the budget. Additionally, he pointed out the necessity of formalising the large informal sector and improving the electricity transmission line to ensure uninterrupted power for industries.
The FBCCI president further suggested increasing the tax-free limit to Tk4.5 lakh due to the decrease in per capita income and emphasised the importance of increasing export diversity.
He noted that introducing a logistics policy in the coming months would greatly benefit the business community.
Nihad Kabir, former president of the Metropolitan Chamber of Commerce and Industry (MCCI), said as a panellist, "How the revenue will be collected and the implementation of the budget is more important than any other topic for now. We must identify and address the leakages and inefficiencies in the budget implementation."
Ashraf Ahmed, president of Dhaka Chamber of Commerce and Industry (DCCI), said the budget was designed to tame inflation and that it is an opportune time for long-term investment.
Md Moinul Huq, AmCham Executive Committee member and Citi country officer of Bangladesh, Citibank, NA, and Reaz Islam, chief executive officer, LR Global Bangladesh Asset Management Company Limited, took part in the discussion as designated panellists.
Dr M Masrur Reaz, chairman of Policy Exchange of Bangladesh, moderated the discussion and provided an overview of the FY2024-25 budget.
AmCham recommended prioritising issues such as foreign exchange reserves, alternatives to increase export revenue, adjusting the tax-free threshold, tax and VAT policies, social safety nets, duties on EPZ and hi-tech parks, renewable energy to alleviate supply chain issues, reducing per capita liability, and focused projects on climate vulnerability.
