DHAKA, June 2, 2017 (BSS) - Dhaka Chamber of Commerce and Industry (DCCI) President Abul Kasem Khan yesterday termed the budget "business friendly" but implementation of such a large budget will be challenged for the government.
"DCCI supports government's target to increase investment to the GDP ratio to 31.09 percent," he said while giving his reaction on the proposed national budget for 2017-18 financial year, said a press release.
The DCCI president also thanked the government for establishing Project Monitoring Pool.
Under the project monitoring pool, government can implement DCCI's concept of National Infrastructure Development Monitoring Advisory Authority(NIDMAA), he added.
He said if any company reinvests 2.5 percent of its gross income on Research and development (R&D) sector, the government should give tax rebate on that amount of money.
Abul Kasem Khan also said the government has initiated to establish 10 Special Economic Zones (SEZs) which is good but government needs to ensure all utility facilities as a fast track basis.
"Five to six percent of GDP should be invested for infrastructure development," he added.
He said investment in infrastructure is a pre-condition to the Foreign Direct Investment (FDI). "The government will import Liquefied Natural Gas (LNG) from 2018 and has a plan to subsidize in the consumer level adjusting with gas price which is good," he added.
Abul Kasem Khan said in that cost of energy will not increase in a bigger scale and it will attract more investment.
Regarding the government's borrowing from banks, Abul Kasem said there is not liquidity crisis in the bank and the government's borrowing from banks is a common phenomenon so it will not impact in private sector credit flow.
"Rather we have to reduce non-performing loans," he said.
The DCCI president said the budget will expedite large projects in our country and expressed his hope that government will reconsider to reduce corporate tax, tax for publicly traded company and increase the tax free income limit for individual.
Source: Bangladesh Sangbad Sangstha (BSS)