The Foreign Investors Chamber of Commerce and Industry (FICCI) has welcomed the Taka 7,97,000 crore proposed budget for the next fiscal year (FY25).
"On behalf of the Foreign Investors Chamber of Commerce and Industry (FICCI), we express our sincere gratitude to Finance Minister Abul Hassan Mahmood Ali for presenting the National Budget for the fiscal year 2024-25 in the Jatiya Sangsad on Thursday," the FICCI president Javed Akhter said in an immediate reaction on the budget in a press release.
As FICCI closely examines today's announced National Budget, the FICCI commended the government's efforts in crafting a comprehensive fiscal plan that addresses critical economic challenges while fostering a conducive environment for business growth. With a keen focus on containing inflation, reducing aggregate demand, and nurturing the supply side of the market, this budget lays a strong foundation for stabilizing the economy, it said. The FICCI said the budget outlines several measures to control inflation and stabilize the economy, including tightening monetary policy by raising interest rates to 8.5 percent.
The Standing Lending Facility (SLF) and Standing Deposit Facility (SDF) rates have been set at 10pc and 7pc, respectively, to curb inflation by reducing money supply and encouraging savings.
Additionally, it said substantial investments aim to boost agricultural productivity by 20pc and industrial output by 15pc through technological advancements and infrastructural improvements. "This is expected to balance demand and supply, thereby stabilizing the economy".
The chamber appreciates the following proposals made in the proposed budget. However, it believes that there are some issues which should be addressed.
A standout feature of this budget is its progressive business-friendly approach, focusing on reducing costs for consumers.
The emphasis on a predictable tax system is appreciated, meeting long-standing demands. The introduction of a prospective corporate tax rate enables accurate tax planning for businesses.
The proposal to reduce the corporate tax rate for companies not listed on the stock exchange from 27.5% to 25%, subject to compliance with cash transaction conditions, is commendable. "It is expected that the proposal to reduce the tax rate will encourage private investment".
The budget reflects a progressive approach by focusing on tax reforms that simplify and clarify the tax regime. This includes expanding the tax base by 25%, introducing electronic fiscal devices, and promoting e-payment systems to streamline tax collection and reduce costs.
