The Metropolitan Chamber of Commerce and Industry, Dhaka (MCCI) has said the 53rd National Budget for the financial year 2024-2025 comes amid significant global and domestic challenges, including market contractions, high interest rates, and geopolitical tensions.
The proposed budget stands at Tk 7,97,000 crore, representing a 4.62 per cent increase from the original budget and an 11.56 per cent rise from the revised budget of the current fiscal year.
It constitutes 14.24 per cent of the GDP. The budget aims to foster economic recovery by allocating Tk 2,65,000 crore to the Annual Development Program (ADP), targeting an inflation rate of 6.5 per cent and a GDP growth of 6.75 per cent.
The National Board of Revenue (NBR) has set an ambitious revenue collection target of Tk 4,80,000 crore, an 11.63 per cent increase from the previous year. This includes targets for VAT authorities at Tk 1,82,783 crore, Income Tax authorities at Tk 1,75,620 crore, and Customs authorities at Tk 1,21,597 crore.
MCCI highlights the complexities in implementing the budget, emphasizing the need for optimizing budget management, reforming tax policies, and enhancing tax administration.
It calls for structural reforms to bring more high-income entities into the tax net while reducing the tax burden on compliant individuals and businesses.
The chamber stresses the importance of financial management to contain the projected budget deficit of Tk 2,56,000 crore, suggesting measures to prevent inflation and ensure effective allocation of resources.
In light of rising costs, MCCI urges reconsideration of the proposed tax rate increase from 25% to 30% for individual taxpayers without adjusting the tax-free income limit.
It also advocates for a reduction in the effective tax rate to stimulate business compliance and economic growth.
MCCI applauds the budget's initiatives, such as reducing corporate tax rates for unlisted companies and extending tax exemptions for Information Technology Enabled Services (ITES) until June 30, 2027.
However, it expresses concern over supplementary duty rate increases on imports, potential inflation impacts, and the implications of allowing the whitening of undeclared money at a low tax rate.
The chamber supports the push towards a "Smart Bangladesh" with digital banking and land management systems. It also recommends an interim budget evaluation every three months to adapt to the global economic climate.
MCCI remains committed to supporting the nation's economic and social development, emphasizing the need for transparent, effective implementation of budgetary policies to ensure sustained growth and stability.
