This year’s budget is to recover economy: FBCCI
The Federation of Bangladesh Chambers of Commerce and Industries (FBCCI) has termed the proposed budget for the 2020-21 fiscal year as a budget for humanitarian, social, and economic development. At the same time, the organization has proposed to withdraw government deposits from the banks that will not implement the government’s Tk 20,000 crore incentive package for small and medium enterprises (SMEs).
Sheikh Fazle Fahim, president of the federation, said this at a press conference on the proposed budget at the Federation building in Motijheel in the capital on Saturday.
He thanked the government for presenting a budget to revive the economy during the coronavirus period.
He said the government has announced a large-scale incentive package to boost the economy in the current coronavirus situation. Tk 20,000 crore for SMEs is one of them.
But there are allegations that banks are not cooperating in its implementation. In this situation, I am proposing to withdraw the government deposits from the banks which will not implement the incentive package, he added.
He also proposed to impose an additional tax on those banks and increase government deposits in those banks that would implement the incentive package.
He also demanded a portion of Tk 20,000 crore as a grant.
The FBCCI president alleged that a class was trying to spread confusion about incentives. He disagreeing with the matter that banks were unable to give loans under incentives due to the liquidity crisis.
“The government has taken various initiatives to increase liquidity in the bank. As a result, new liquidity of Tk 70,000 crore has been created in the banks before Eid. The bankers also told us (FBCCI) in a meeting that there is no liquidity crisis,” he said.
Sheikh Fazle Fahim said the implementation of incentives is not only for the interest of traders but also would play a game-changing role in the economy as a whole, he claimed.
The FBCCI president also reminded that the FBCCI would not recommend a loan for any defaulter. Out of the Tk 20,000 crore loan allocated under the incentive for the SME sector, Tk 50 crore has been released in the last two months, he also said.
Sheikh Fazle Fahim proposed abolishing the 3-year advance tax and reducing taxes, VAT and customs tariffs and introducing an integrated automated revenue tax system, AIT 3 percent instead of 5 percent.