Different chamber leaders hailed the budget for the new fiscal year and also came up with their own suggestions in their instant reactions.
Hailing the proposed budget for the fiscal year 2022-23, the country's apex trade body FBCCI has said this is 'development' and 'welfare' centric.
Terming the time as 'abnormal', Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) President Jashim Uddin said the government's attempt to propose a welfare-centric budget at this time is appreciable.
However, the FBCCI president expressed his disagreement over the proposed budgetary provision allowing legalisation of money smuggled from the country.
"I don't like the provision, I think it should not be allowed," he said.
Jashim Uddin said it would discourage the country's honest and loyal businesses.
He also said there should be a timeline for legalising such money, if the government wants to introduce the provision.
Mr Jashim Uddin commented that it was very unlikely that the money stashed abroad would ever return to the country.
He said LDC graduation, inflation, budget deficit, and lack of capacity of implementation remained some of the key challenges for the budget.
Regarding the dependence on local banks to address the budget deficit, the apex trade body requested the government to take funds from alternative foreign sources.
But the FBCCI welcomed the cut in corporate tax rates on different segments of business.
However, Mr Uddin said the budget proposal should have reduced the advance income tax on local supplies.
The FBCCI president expressed his hope that the revenue target for this year will be fulfilled.
The Dhaka Chamber of Commerce and Industry (DCCI) says tackling inflation to protect people's purchasing power will be the key challenge for the next budget.
Enhancing private-sector investment, employment generation, revenue shortfall and financing are other challenges of the proposed budget for fiscal year 2022-23, it adds.
DCCI president Rizwan Rahman reacted to the proposed budget on behalf of the chamber on Thursday.
For targeted GDP growth, he says, the government should focus on widening tax net gradually, automation of tax structure, fixing up rational revenue target and consistency of government expenditure.
Inconsistency between income and expenditure in the proposed budget may lead to dependency on bank borrowing or foreign debt which will put more pressure on private-sector investment, he adds.
The DCCI thinks that a planned, timely, cost-efficient and implementable budget is more effective than a big budget, Mr Rahman maintains.
To ease the burden of inflation on middle and lower middle-income groups of society, the DCCI proposes to raise the tax-free income ceiling for individuals.
However, few slabs can be created for the higher income group but obviously in a rational manner, it adds.
The budget also proposes that listed companies offloading more than 10 per cent of their paid-up capital to the market through IPO can avail the opportunity to give 20-per cent corporate tax.
Both listed and non-listed companies who have cash expenditure or investment of Tk 1.2 million annually and if they do transactions through banking channel are eligible to give 20-per cent corporate tax (listed) and 27.5 per cent (non-listed).
If any listed company fails to comply with these two conditions, they will have to pay 25-per cent corporate tax, which is quite insignificant, the DCCI argues.
The DCCI president suggests that corporate tax rate be reduced to be more competitive not only in the international market, but also in the local market.
Citing 58.36-per cent ADP (annual development programme) implementation till May 2022, he says mega infrastructure projects should be completed at a faster pace ensuring transparency and accountability.
The Chattogram Metropolitan Chamber of Commerce and Industry (CMCCI) welcomed the budget terming it as pro-development and pro-people.
President of CMCCI Khalilur Rahman also expressed his gratitude to Prime Minister Sheikh Hasina and Finance Minister A H M Mostafa Kamal for placing the pro-development budget.
