They urged the government to review the decision to lift such a benefit saying that the rise in duties on imported raw materials, intermediate inputs and capital machinery would hinder industrialization in general and hit badly the backward linkage industries in particular.

The issue came across the table when the business leaders met Finance Adviser Dr A B Mirza Azizul Islam at his office last Tuesday.

These leaders include Mahbubur Rahman, president of Bangladesh chapter of International Chamber of Commerce (ICC), Latifur Rahman, president of Metropolitan Chamber of Commerce and Industries (MCCI), Hossain Khaled, president of Dhaka Chamber of Commerce and Industries (DCCI), Masih Ul Karim, president of Foreign Investors' Chamber of Commerce and Industry (FICCI), Anwar-ul-Alam Chowdhury, president of Bangladesh Garments Manufacturers and Exporters Association (BGMEA), Md. Fazlul Haque, president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), Abdul Hai Sarker, president of Bangladesh Textile Mills Association (BTMA), R. Maksud Khan, executive board member of ICC-B and C K Hyder, secretary general of MCCI.

Withdrawal of the existing 4 percent infrastructural development surcharge from imports of finished and luxury goods will open up the market for cheaper imports and hurt local industries, the business leaders observed.

They suggested maintaining the existing level of duty on CI sheet, television parts and components, raw materials for electric cables.

They also called for continuation of zero tariff concession for computer and computer accessories to help the IT sector grow and thus create opportunity for foreign exchange earning.

The leaders hailed the proposal for augmenting power generation over the next 3 years: 345 MW in 2007-08; 900 MW in 2008-09 and 1050 MW in 2009-10.

The plan will help improve the supply position against the projected demand for power, they said. However, considering the projected GDP growth, the demand for power by 2010 would be much more than that estimated by the government, they added.

They were critical of the ambitious target of a 16 percent increase in tax collection in the next year against the current year's 9 percent revenue growth.

They also lauded the adviser's budget proposal for widening the safety net for the poor.

They said the allocation of over 57 percent to the projects relating to poverty reduction is also praiseworthy.

The leaders also welcomed the proposed Tk 209 crore allocation for micro-credit, as it would help generate women employment.

Praising the allocation of Tk one billion for SME Fund, they said Tk 7.5 billion for diesel subsidy and Tk 15 billion for fertilizer subsidy would directly be useful to the agriculture sector.

The business leaders also expressed their happiness that the government has taken measures to cut discretionary powers of the tax officials and to contain price spirals.

Emphasis on tackling inflation and developing human resources development would yield positive results, they told the adviser during the meeting.