Finance and Planning Adviser Dr Mirza Azizul Islam made the budget proposal Thursday.

The leaders of different associations and chambers hailed it for its proposed measures to contain prices of essentials. They said they are happy to find it that the new budget gave due importance to some sectors such as agriculture, energy and power, health, and bond market.

They also welcomed the proposals to abolish the provision of whitening black money and continue the duty-free benefit for essential commodities and lifesaving drugs.

The business leaders, however, said good governance and strong monitoring system are needed to achieve the goals of the new budget.

They demanded that the proposed enhancement of customs and supplementary duty on raw and intermediate material and withdrawal of zero duty facility on import of textile machinery be reconsidered.

DCCI
Dhaka Chamber of Commerce and Industry (DCCI) said due to proposed customs duty structure and abolition of industrial development surcharge, the local industry will face an uneven competition vis-à-vis imported finished goods.

Such anti-domestic industry bias should be removed by at least retaining import duty structure of the current financial year, as protection of home/domestic industry is a must, the DCCI recommended.

The chamber said lowest slab of customs duty should be restored to 5 percent only to keep a difference of at least 20 percent between raw materials and finished products.

It, however, said the budget has more positive elements than negative. The budget has rightly given priority to poverty alleviation, agriculture, power, infrastructure, rural development and human resource development.

But in the process, creation of employment opportunities through industrialisation and diversification of exports appears to have been neglected, the chamber lamented. Admittedly, the cost of doing business in Bangladesh is high due to high interest rate, power crisis, fragile infrastructure, weak administration apparatus and political uncertainty, it remarked.

The DCCI said the size of the budget is rather big. In order to yield good results, its effective implementation, maintaining transparency and accountability to minimise waste and abuse of fund, shall be necessary.

BLFCA
Welcoming the government proposal for exempting income generated from zero coupon bonds from payment of income, Bangladesh Leasing and Finance Companies Association (BLFCA) said the proposal will revive the now stalled securitisation initiative, an alternative source of financing, especially for the resource strapped financial institutions (non-banking).

The BLFCA in a post-budget reaction said successful securitisation deals would lead to lowering the cost of funds of the financial institutions, which will in turn allow them to pass the benefits on to their clients.

Exemption of treasury bonds issued by the government from collection of all upfront and advance tax is praiseworthy. However, the association demanded that this exemption be extended to bonds and securities issued by banks and financial institutions to develop a vibrant bond market in the country.

BFLLFEA
Bangladesh Finished Leather, Leather Goods and Footwear Exporters Association (BFLLFEA) urged the government to reconsider the proposed increased duties on industrial raw materials saying that enhancement of the duty would have adverse impact on the local industry.

The association also requested the government to earmark a block allocation for the sector so that they can relocate the industry from Hazaribagh to Savar Leather Village.

The BFLLFEA, however, said although the proposed budget is an ambitious one, it can be implemented through good governance.

BFVAPEA
Bangladesh Fruits, Vegetables and Allied Products Exporters Association (BFVAPEA) welcomed the proposed budget.

The association said continuation of export subsidy would encourage the exporters, especially the agro-based products exporters. Besides, the emphasis on agriculture sector in the budget will ultimately help the agro-based industry to earn more foreign currency through export.

TCCI
Hailing the government for taking initiatives in the budget to check price hike of essentials, poverty reduction and ensuring social safety net, the Tangail Chamber of Commerce and Industry (TCCI) requested the government to give a second thought on the increased duty structure on industrial raw materials.

BSIA
Terming the proposed budget a timely, realistic and welfare driven, Bangladesh Sick Industries Association (BISA) asked the government to reconsider about allocation for the sick industries.

The association resented absence of any proposal for allocation of subsidy for the sick industries in the new budget, although they recommended a Tk 300 crore subsidy.