International Business Forum also suggests reduction in duties on import of hospital and medical equipment to help the health services improve and check influx of people seeking healthcare abroad, says a press release.

In its reaction to the proposed budget for 2007-08, the forum said the government needs to have a long-term plan to encourage investment in the tourism sector, which offers tremendous potential.

"As an alternative, the government can immediately identify the potential tourist spots and outsource those in private sector through BOT agreement,' the forum said in a statement, signed by its President Mahmudul Islam Chowdhury.

The forum appreciated the provision of special fund for SME sector, enhanced allocation for power generation, simplification of self assessment system for tax payment and corporate tax rebate to encourage mobile phone companies in the stock market.

It expressed concern over the proposed increases in customs duties on industrial raw materials, saying the duty structure would threaten local industries and encourage imports.