Achieving 7.2pc growth to be challenging: MCCI
Dhaka, June 13 (UNB) - The Metropolitan Chamber of Commerce and Industry (MCCI) on Wednesday said achieving 7.2 percent economic growth will be challenging in the context of slow pace of domestic and foreign investment and high inflationary pressure.
At a post-budget function, the chamber leaders suggested boosting revenue collection and using foreign resources more efficiently to finance the budget deficit projected for the coming fiscal (2012-2013).
MCCI and Policy Research Institute (PRI) jointly arranged the event titled ‘Views on Budget 2012-2013’ at the MCCI conference hall.
Former finance adviser to the caretaker government AB Mirza Azizul Islam, PRI chairman Dr Zaidi Sattar, former NBR chairman Dr Muhammad Abdul Mazid, MCCI vice president Nihad Kabir, secretary general Farooq Ahmed, PRI executive director Dr Ahsan H Mansur, MCCI chairman, Tariff and Taxation Sub-committee Anis A Khan and Prof MA Taslim were, among others, present.
They urged the government to limit its borrowing from the banking channel within the projected amount of Tk 23,000 crore to keep the required credit supply to the private sector avoiding the crowding out effect of the private sector.
In economics, crowding out is a phenomenon occurring when expansionary fiscal policy causes interest rates to rise, thereby reducing investment spending, they said.
Presenting recommendations on the proposed budget, Anis A Khan said the MCCI is disappointed for allowing whitening of undisclosed income. “The concession, if allowed, must be limited to income from legal sources and their investment restricted to productive sector only.”
The chamber strongly opposed the new 2 percent tax on mobile phone calls and said ‘it’s socially unjust’ and recommended imposing no tax on any prepaid or postpaid mobile bills.
The MCCI also stood against the 1.2 percent tax at source on exports and urged the government to keep at present 0.60 percent and 0.70 percent in order to provide relief to the exporters as the export earnings are declining against the backdrop of the global slowdown with lower demand.
The trade body demanded higher subsidy for the agriculture sector to make the country self-sufficient in food. It also suggested formulating a sound subsidy policy for effective implementation.
The MCCI also opposed the proposed tax imposition on the trade bodies and demanded withdrawal of it as the chamber thinks trade bodies are non-profit organisation and its income is not distributed among its members.
It said the targeted GDP (gross domestic product) growth rate of 7.2 percent should be raised to 8 percent in the future in order to transform Bangladesh into a middle-income country.
At a post-budget function, the chamber leaders suggested boosting revenue collection and using foreign resources more efficiently to finance the budget deficit projected for the coming fiscal (2012-2013).
MCCI and Policy Research Institute (PRI) jointly arranged the event titled ‘Views on Budget 2012-2013’ at the MCCI conference hall.
Former finance adviser to the caretaker government AB Mirza Azizul Islam, PRI chairman Dr Zaidi Sattar, former NBR chairman Dr Muhammad Abdul Mazid, MCCI vice president Nihad Kabir, secretary general Farooq Ahmed, PRI executive director Dr Ahsan H Mansur, MCCI chairman, Tariff and Taxation Sub-committee Anis A Khan and Prof MA Taslim were, among others, present.
They urged the government to limit its borrowing from the banking channel within the projected amount of Tk 23,000 crore to keep the required credit supply to the private sector avoiding the crowding out effect of the private sector.
In economics, crowding out is a phenomenon occurring when expansionary fiscal policy causes interest rates to rise, thereby reducing investment spending, they said.
Presenting recommendations on the proposed budget, Anis A Khan said the MCCI is disappointed for allowing whitening of undisclosed income. “The concession, if allowed, must be limited to income from legal sources and their investment restricted to productive sector only.”
The chamber strongly opposed the new 2 percent tax on mobile phone calls and said ‘it’s socially unjust’ and recommended imposing no tax on any prepaid or postpaid mobile bills.
The MCCI also stood against the 1.2 percent tax at source on exports and urged the government to keep at present 0.60 percent and 0.70 percent in order to provide relief to the exporters as the export earnings are declining against the backdrop of the global slowdown with lower demand.
The trade body demanded higher subsidy for the agriculture sector to make the country self-sufficient in food. It also suggested formulating a sound subsidy policy for effective implementation.
The MCCI also opposed the proposed tax imposition on the trade bodies and demanded withdrawal of it as the chamber thinks trade bodies are non-profit organisation and its income is not distributed among its members.
It said the targeted GDP (gross domestic product) growth rate of 7.2 percent should be raised to 8 percent in the future in order to transform Bangladesh into a middle-income country.
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