Finance Minister assures easier business operations, not tax or VAT exemptions

Finance and Planning Minister Amir Khasru Mahmud Chowdhury has made it clear that it will not be possible to give any major exemptions in income tax and VAT as expected by businessmen in the upcoming national budget. However, he assured that all administrative and procedural obstacles existing in doing business in the country will be removed.

He made these remarks as the chief guest at the pre-budget advisory committee meeting organized by the National Board of Revenue (NBR) and FBCCI at the Pan Pacific Sonargaon Hotel in the capital on Wednesday (April 29).

This is the biggest discussion meeting of the year between businessmen and revenue authorities focusing on the budget.

In his speech, the Finance Minister emphasized on the tax structure and said, “Although it is not possible to give major exemptions in taxes, we want to remove all the obstacles to doing business. The growth of the private sector will take the country’s economy forward.”

Criticizing the decision to increase the charges of Chittagong Port by 40 percent, the minister said that such a move is not business-friendly. He promised to curb corruption and ease 'doing business' in the port area, saying, "If the businessmen tell us their problems within the next three months, they will be resolved quickly."

Highlighting the government's future plans to maintain the country's economic stability, Amir Khasru Mahmud Chowdhury said that a specific time has been sought from the International Monetary Fund (IMF). He said, "We have told the IMF that a two-year cushion is needed. The economy will take off from the third year."

The minister further said that the new government had to handle an additional financial pressure of about $4 billion due to the war situation in the Middle East.

Terming the private sector as the main driving force of the economy, the finance minister said that along with the success of the ready-made garment (RMG) sector, why other sectors are lagging behind will be seriously reviewed. He announced that in the next fiscal year, quality investment in effective infrastructure sectors will be ensured instead of unnecessary mega projects. The capital crisis of big businessmen has also been reported to the IMF and the World Bank.

In the meeting, the FBCCI proposed to increase the tax-free income limit to Tk 5 lakh from the current one, considering the issue of inflation. The organization's administrator Md. Abdur Rahim Khan said, "For women and the elderly, this limit should be set at Tk 5.5 lakh and the maximum tax rate should be set at 25 percent."

The meeting, chaired by NBR Chairman Abdur Rahman Khan, saw the country's top business leaders and representatives from various sectors present their views.