Budget industry friendly, growth supportive: EAB
It put forward 5-point proposals for Govt consideration
Exporters Association of Bangladesh (EAB) has termed the proposed budget for 2012-13 fiscal as growth-oriented and industry friendly and has welcomed the government for prioritising key sectors like power and energy, agriculture, communication and physical infrastructure.
Giving its post-budget reaction at a press conference in Sonargaon Hotel in the capital on Sunday, the leaders of the EAB, the apex trade body of export sector, also hailed the government initiative to protect the local industry as well as support the export-oriented sectors.
“All these would have a positive impact on the country’s industrialisation as a whole,” they said.
EAB belives the proposed budget is ‘a pro-people and growth-oriented’ one which will also help to accelerate growth of the export sector.
“A higher export growth will help to attain the key budgetary goal of achieving GDP growth to 7.2 per cent and inflation within 7.5 per cent for the next fiscal,” it added.
Reading out a written statement, the EAB President Abdus Salam Murshedy said steps like reducing tax on capital machinery imports for export sector and for Effluent Treatment Plant (ETP), withdrawal of VAT from the rented factory premises and continuation of incentive package for exploring new markets will certainly boost up export earnings.
Besides, emphasising on human resources development, block allocation for employment generation, incentive package for capital market, setting up a hi-tech park in Gazipur and API park in Munshiganj and incentive for ship building industry are also some bold steps proposed in the budget for the upcoming fiscal, he said.
Murshedy, however, expressed dismay over the budgetary provision of hiking tax at source on export proceed and put forward 5-point recommendations to the government “for its kind consideration”.
He also urged the government to consider some proposals for the interest of the export sector. The proposals are withdrawal of 1.2 per cent tax at soucre on exports uninterrupted power and gas supply to the export-oriented industries, cut in bank interest rate to single digit, unified exchange rate for exporters and a enhance rate of cash incentive (tax free).
“Hike in tax at source fro, 0.6 per cent to 1.2 per cent will adversely impact the export sector by reducing competitive edge of local goods in the international market. It will also hurt profitability of the entrepreneurs,” Murshedy added.
He pointed out that export sector is passing through a critical time influenced largely by various external and internal threats. On the other hand, he said a significant hike in power and fuel prices hit hard the industry by rising cost of production.
“In such a situation, the industry cannot afford a leap of tax at source because it will be an extra burden for it,” he noted.