Reaction of IBFB on National Budget 2018-19

Reaction of IBFB on National Budget 2018-19
Press Conference on “Reaction of IBFB on National Budget 2018-19”.

IBFB 2018-19 FY Budget Observations
Date: 11 June 2018
Venue: IBFB Conference Hall, Dhaka

More concentration should be given on Direct tax than the Indirect Tax, Incentive for Industries and business in the backward area of the country,  good governance and support to agriculture and industry should be the priority of the budget-   said IBFB President at the Press Conference of IBFB on National Budget held on Today Monday 11 June 2018



In order to foster the overall economic development and strengthen the economic basement there is no any alternative of creative and target oriented budget. International Business Forum of Bangladesh believe that, to make Bangladesh a middle income nation by 2021 and a peaceful developed country by 2041 a diversified, expanded and implementable budget is highly essential.  IBFB thinks according to our economic growth and business expansion the 4,64,573 Cr taka budget is acceptable and like to thank Honorable Finance Minister for announcing this amount of budget. 




IBFB president said, in 2016-17 FY the growth of budget allocation was 15.42% compared to 2015-16 and in 2017-18 FY the budget allocation raised 17.51%, but cutting the budget in the revised form due to lack of implementation capacity is really depressing for the business and economy. In 2015-16 FY India and Vietnam implemented 100% of their budget where Bangladesh implemented only 79.4%. 




Mr. Khan concerned that although during the first 9 month (July-March) ADP implementation never reached 50% in last 7 years, at the end of the fiscal year ADP implementation rate found above 80% which may not ensure the quality of work and questioned the transparency and accountability of overall process.  To hold the same speed of ADP implementation throughout the year IBFB president suggests utilizing money from the 3 years rolling budget. He also proposed to form a high powered commission/committee including representative from private sector to review and monitor the ADP implementation. At the same time accountability can be ensured during the approval of supplementary budget in the parliament.     




IBFB president welcomes the proposal to protect the local industries by giving some tax benefits, tax rebate on the raw materials of Pharmaceutical, Textile and poultry feed industries. IBFB also cordially welcomes the proposal to continue VAT rebate on local Motorcycle and Mobile phone industries. 




He urges to encourage the investors to invest in the remote and economically backward region of the country by providing tax rebate, vat reduction and arrangement for bank loans with low interest. He expressed his concern regarding the increasing poverty rates in some northern districts namely Kurigram, Dinajpur, Gaibandha, Rangpur and Lalmonirhat.




Mr. khan also called to reduce indirect tax and increase direct tax. Because indirect tax imposes burden on the poor people. He said, New Zealand collecting 58% tax revenue from direct tax and India collecting 51.6% tax revenue from direct tax but it is 34% for Bangladesh. He also suggested to increase the number of taxpayers rather than increasing the tax rate and increase limit of taxes able income to 3 lac. 
 
Among the others Dr. Abdul Majid, Director, IBFB and Former Chairman, NBR, Vice Presidents of IBFB Mr. Md. Omar Shafayat Kausar & Mr. Humayun Rashid & the Directors of IBFB Mr. M.S. Siddiqui, Mr. Sayed Mustafizur Rahman & Mr. Mohammad Ali Deen were also present at the press conference. 






More concentration should be given on Direct tax than the Indirect Tax, Incentive for Industries and business in the backward area of the country,  good governance and support to agriculture and industry should be the priority of the budget-   said IBFB President at the Press Conference of IBFB on National Budget held on Today Monday 11 June 2018


In order to foster the overall economic development and strengthen the economic basement there is no any alternative of creative and target oriented budget. International Business Forum of Bangladesh believe that, to make Bangladesh a middle income nation by 2021 and a peaceful developed country by 2041 a diversified, expanded and implementable budget is highly essential.  IBFB thinks according to our economic growth and business expansion the 4,64,573 Cr taka budget is acceptable and like to thank Honorable Finance Minister for announcing this amount of budget. 


IBFB president said, in 2016-17 FY the growth of budget allocation was 15.42% compared to 2015-16 and in 2017-18 FY the budget allocation raised 17.51%, but cutting the budget in the revised form due to lack of implementation capacity is really depressing for the business and economy. In 2015-16 FY India and Vietnam implemented 100% of their budget where Bangladesh implemented only 79.4%. 


Mr. Khan concerned that although during the first 9 month (July-March) ADP implementation never reached 50% in last 7 years, at the end of the fiscal year ADP implementation rate found above 80% which may not ensure the quality of work and questioned the transparency and accountability of overall process.  To hold the same speed of ADP implementation throughout the year IBFB president suggests utilizing money from the 3 years rolling budget. He also proposed to form a high powered commission/committee including representative from private sector to review and monitor the ADP implementation. At the same time accountability can be ensured during the approval of supplementary budget in the parliament.     


IBFB president welcomes the proposal to protect the local industries by giving some tax benefits, tax rebate on the raw materials of Pharmaceutical, Textile and poultry feed industries. IBFB also cordially welcomes the proposal to continue VAT rebate on local Motorcycle and Mobile phone industries. 


He urges to encourage the investors to invest in the remote and economically backward region of the country by providing tax rebate, vat reduction and arrangement for bank loans with low interest. He expressed his concern regarding the increasing poverty rates in some northern districts namely Kurigram, Dinajpur, Gaibandha, Rangpur and Lalmonirhat.


Mr. khan also called to reduce indirect tax and increase direct tax. Because indirect tax imposes burden on the poor people. He said, New Zealand collecting 58% tax revenue from direct tax and India collecting 51.6% tax revenue from direct tax but it is 34% for Bangladesh. He also suggested to increase the number of taxpayers rather than increasing the tax rate and increase limit of taxes able income to 3 lac. 
 
Among the others Dr. Abdul Majid, Director, IBFB and Former Chairman, NBR, Vice Presidents of IBFB Mr. Md. Omar Shafayat Kausar & Mr. Humayun Rashid & the Directors of IBFB Mr. M.S. Siddiqui, Mr. Sayed Mustafizur Rahman & Mr. Mohammad Ali Deen were also present at the press conference. 



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