A public-private forum has suggested the deferment of 12 "non-priority" government development projects worth Tk 2.50 billion, considering the fast-spreading virus situation.
The Business Initiative Leading Development, or BUILD, has singled out the projects analysing 1,475 projects in the Tk 2.06 trillion annual development programme (ADP), for fiscal year 2019-20.
In its budget proposal for FY 2020-21, the BUILD said the allocated fund for the projects could be diverted to the priority sectors such as health, agriculture, social safety net, banking sector, etc.
The BUILD submitted the budget proposal to the National Board of Revenue, or NBR, recently.
The projects categorised as "non-priority" are related to infrastructure development such as the construction of chancery complex and ambassadors' residents in different countries, building for the ICB, Bangladesh Public Service Commission, and vertical extension of circuit houses in 37 districts.
"There might be some other similar projects," the advocacy group said.
"The government would be able to easily devise a set of simple indicators to evaluate the level of priority and the urgency of a project, so that those ranking low can be relegated for future rather than immediate implementation," it added.
It also suggested the government to save money from the lower oil purchase price, which has more than halved to US$33 since January 07.
"Profits of state-run Bangladesh Petroleum Corporation have climbed to around Tk 230 million per day. The profit can be shared to support the economy of Bangladesh to combat the impact of COVID-19," it said.
It suggested the revenue board exempt the BPC from the payment of tariff and other taxes on the import of fuel for FY 2020-21.
The BUILD said the profit of BPC will be two to three times the present level, as international prices of refined and non-refined oil collapsed to $10-20 per barrel in April.
It said the demand for oil will go up after the economic activities resume in full swing after lockdown.
The BUILD has suggested almost doubling the health sector allocation from 5.63 per cent to Tk 600 billion in the national budget, set to be rolled out next month.
It also suggested increasing allocation of social protection to at least 6.0 per cent, from 2.2 per cent, of gross development product, GDP, or Tk 1.5 trillion.
The BUILD has proposed to offer a wide-range tax benefits and special allocation worth Tk 150 billion for subsidising the agricultural sector.
It has also sought fiscal incentives for cottage, micro and small enterprises.
The forum has suggested increasing the tax-free threshold for individual taxpayers and lowering the income and corporate tax rates by 5.0 per cent across all sectors.
Other proposals of the BUILD include VAT exemption for small businesses, reduction of tax at source for local raw material suppliers, lowering VAT at trading stage to 2.0 per cent, rationalising import duty of industrial raw materials, etc.
