Separate budget for mega projects: Muhith

Stressing the need for undertaking large transformational projects for a quick jump in GDP growth, Finance Minister AMA Muhith on Thursday said there will be a separate budget for mega projects in the upcoming fiscal year (2016-’17), reports the UNB.

 

“The size of the next budget will be Tk 3.40 lakh crore…There’ll also be a separate budget for transformational mega projects,” he said while addressing a pre-budget discussion in the city.

 

The Metropolitan Chamber of Commerce and Industries, Dhaka (MCCI) arranged the discussion at its conference hall with president Syed Nasim Manzur in the chair.

 

About a suggestion to make tax payment easier, he said the government wants to do so but could not yet reach the goal. “The government considers making tax payment and collection process easier and pleasant ones for both the payers and collectors.”

 

About another suggestion for giving rewards to regular taxpayers, Muhith said there should be incentives for good compliance and behavior.

 

He said a new customs law will be enacted in 2017, while a new direct tax law will be in place in 2018.

 

Addressing the function, Internal Resource Division Secretary and also Chairman of National Board of Revenue (NBR) Md Nojibur Rahman said the NBR is moving ahead to establish ‘Digital NBR’ in line with ‘Digital Bangladesh’. 

 

Noting that installing automation system in tax collection process is under NBR’s consideration, he said the automation system will create an environment that will ensure transparency, accountability and good governance.

 

MCCI president Nasim Manzur suggested rationalizing tax system to make it a well-functioning one, and said the high rate of total tax incidence distorts costs and encourage avoidance.

 

Saying that there has been a negative trend in export growth rate in recent years, he suggested that the government must make some budgetary provisions to ensure that exports do not slow down further.

 

Noting that poor governance, particularly corruption in state-owned and some private commercial banks, have had a very adverse effect on the economy, Nasim hoped there will be reflection of some meaningful fiscal measures that will end the culture of impunity of habitual defaulters.

 

In his keynote paper, Chairman of the Tariff and Taxation Sub-Committee of MCCI Adeeb H Khan placed a number of proposals.

 

Among the proposals, bringing down the rate of source tax on import at 3 percent from the existing 5 percent, reducing the rate of tax on service import at 10 percent from the exiting 20-30 percent and reducing the highest personal tax rate to less 25 percent.

 

Former FBCCI President Kazi Akram Uddin Ahmad and MCCI Secretary General Fariq Ahmed, among others, were present.