The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) urged the Government to initiate steps to address the foreign currency crunch.
“Take steps to address the shortage of foreign currencies,” said the FBCCI, recommending taking initiatives through stakeholder consultations. The apex chamber appealed its proposals submitted before the finance minister recently over tax and other budgetary measures for FY ’25 beginning in July.
On 27th March, the reserves were valued at US $ 19.45 billion, down from over US $ 41 billion two years prior.
When starting initiatives that depend on outside funding, the Government should exercise caution, the FBCCI advised.
To maintain order and sound governance in the financial sector, it was suggested that a banking commission be established or that changes be made to the banking industry.
The top trade association stated that measures to lower operating expenses, steer clear of loans with harsh terms, and build efficient infrastructure should be given top priority in the budget for the upcoming fiscal year.
The FBCCI suggested integrating the VAT and customs administrations under one integrated automation process and guaranteeing collaboration between them.
“There is a lack of coordination among various wings of the National Board of Revenue.”
Businesses have to provide information about tax, VAT and customs separately and so it is necessary to bring the three wings under automation, said the FBCCI.
It also said there is a provision for rewarding customs, VAT and income tax officials. As a result, the law is abused and many honest businessmen suffer.
“Therefore, the tradition of rewards should be cancelled to curb the discretionary power of officials.”
The trade association sought the NBR to remove the advance income tax as well as the advance tax on imported intermediate goods and raw materials utilised in industrial manufacturing.
To protect the interests of the nation, it recommended limiting the application of additional duty, except luxury goods and a limited number of products.
To guarantee the nearly one crore registered taxpayers’ tax compliance, the FBCCI pleaded with the NBR.
At present, roughly 3.5 million taxpayers file tax returns.
The trade body also lamented a lack of automation concerning income tax.
“Businesses have long been demanding for online filing of returns and assessments of taxes. Though there have been some improvements, a full-fledged automation is yet to occur.”
