Budget on time despite tough economic pressure: DCCI

Dhaka Chamber of Commerce and Industry (DCCI) termed the proposed budget for the financial year 2024-25 as a ‘timely budget’ despite the severe economic pressure. The business organization said this in the immediate budget response on Thursday (June 6).

Welcoming the proposed budget for the fiscal year 2024-25, Dhaka Chamber said that the finance minister has given special importance to measures such as price inflation, local industrialization, diversification of exports, expansion of credit, reduction of dependence on the financial sector to meet the deficit, etc. in the upcoming budget. The government has taken the recommendations of the Dhaka Chamber very seriously.

Among the proposals of the Dhaka Chamber, there were several proposals including increasing the tax rate, replacing the provisions of the Labor Welfare Fund Act, reducing the claimed tax rate mentioned in the contested order while filing an appeal in the Musak case.

Dhaka Chamber feels that there is room for improvement in several areas, including overall inflation control, abolishment of minimum tax calculation of tax at source, creation of alternative source of finance sector, removal of foreign exchange reserve situation, reduction of capital market tax and formation of separate tax code for CMSME sector. By quickly implementing these issues, it will help to achieve the targets of the next budget and meet the expectations of the private sector.

DCCI informs that the budget is timely even in the face of severe economic pressure. As the budget deficit has been reduced to reduce inflation, there have also been attempts to increase tax rates without increasing tax rates. There is also an effort to increase efficiency and quality in government spending in the Finance Minister’s speech. It may be advisable to try to limit the increase in government spending.

The biggest challenge will be implementing the good efforts of the 2024-25 budget, DCCI said.