DCCI wants quick finalization of coal policy, stable public policy for PPP, continuation of SOEs privatization policy to accelerate economic growth

By AKM Moinuddin

Dhaka, June 23 (UNB) - The Dhaka Chamber of Commerce and Industry (DCCI) on Wednesday stood against government’s policy to stop privatization of state owned enterprises (SOEs) and sought continuation of SOEs privatization policy to accelerate economic growth.
The trade body also wants stable public policy for the desired implementation of long-term development projects under the Public Private Partnership (PPP) scheme and to increase confidence in the business sector through greater protection for their investment.
“We won’t support it if the government stops privatization of SOEs. It should continue and we strongly recommend the continuation of SOEs privatization policy because it will generate funds for development activities,” said the DCCI President Abul Kasem Khan in a post-budget press conference held at its conference room today.
Khan said they want “standardised guidelines,” whoever comes to power, for PPP in order to implement unimpeded long-term projects, saying “it will boost investment and our confidence.”
The trade body head also came up with a number of budgetary recommendations for the government including quick finalization of coal policy, declaration of industrial policy, additional allocation for the power and energy sectors, special allocations for a better transportation system in Dhaka and reduction of tax at source to achieve the targeted GDP growth and required economic development.
The DCCI president thinks the targeted 6.7 percent GDP (gross domestic product) growth is achievable if the shortcomings including electricity crisis are addressed properly.
“We proposed an allocation of Tk 10,000 crore for the development of power and energy sector. We still feel that the proposed allocation (Tk 6115 crore) is insufficient and it should be increased to boost investment and businessmen’s confidence,” Abul Kasem said.
With regards to the inadequate transportation system in capital city, DCCI sought a special allocation of Tk 5000 crore for the betterment of Dhaka city transportation.
DCCI lauded government for paying special attention to the railways sector and urged the government to create a separate ministry titled ‘Ministry of Railways’, which the DCCI thinks will help achieve the desired level of development in the communication sector.
DCCI drew the government’s attention to the development of the Dhaka-Chittagong Economic Corridor (DCEC) to facilitate country’s decentralized development apart from improving transportation between Dhaka-Chittagong.
Reminding the government of the need for a quick announcement of industrial policy, the DCCI president said they want to see a synchronization of industrial policy and fiscal policy to accelerate industrialization in the country.
Replying to a question, the DCCI boss said he does not think the size of ADP (annual development programme) is challenging, rather its proper implementation is. “The government should prioritize the projects.”
While presenting a case study on the impact of the proposed tax hike at source, DCCI director Asif Ibrahim said: “It’ll be an unwise move to increase the tax at source from existing 0.25 percent to 1 percent.”
Asif said the export sector is already losing its competitiveness due to volatile raw material prices and if the government does not withdraw the decision it will badly hamper exports. “We urge the government to keep the existing tax at source which is 0.25 percent.”
Other DCCI recommendations include increasing the ceiling of tax-free income from Tk 1.65 lakh to 2 lakh, reduction of corporate tax of listed and unlisted companies and banks, reduction of tax on company dividend income, reduction of advance income tax (AIT), reduction of import duty on raw materials from 5% to 3 % to stimulate local industry, and reduction of advance trade VAT on import.
DCCI wants proper implementation of its proposals placed to the government to simplify tax collection system and to mitigate harassment of taxpayers.
“The government’s proposal to set up tax offices across the country will increase revenue expenditure and people’s plight. Automation of the tax department would be a better way to go about it. We recommend bringing the tax department under full-automation quickly,” DCCI director Rafiqul Islam Khan said.
Earlier, DCCI president Abul Kasem Khan thanked the government for accepting their proposals in budget formulation, including the introduction of a ‘tax card’ for the taxpayers.
He hoped that the scheme (tax card) would be widened further in the coming years so that all taxpayers can get special privilege.

END/UNB/