Appreciable and bold budget: BUILD

The Business Initiative Leading Development (BUILD) has praised the proposed national budget for 2021-22 fiscal year and said it was a bold initiative to set the GDP growth target at 7.2 per cent amid the ongoing pandemic.

Bangladesh economy did well in comparison with similar countries in the world during the Covid-19 situation, the public-private business policy formulation body said in a press release yesterday as part of its budget reaction.

So far, the budget seems good in terms of the situation and forward-looking considering the 'Made in Bangladesh' concept, which will not only help businesses to diversify but also create road for the nation's graduation from the least developed country category, it said.

The support for the agriculture sector and medical and hospital services outside Dhaka, Chattogram and other urban centres is welcoming and a very important initiative, but they need additional support under public-private partnership to create better service levels, it said.

Export diversification in medical and personal protective equipment and extension of tax exemption benefits up to June 2022 may encourage export diversification in this sector, the BUILD said.

On the other hand, it seems, sluggish investment will continue as coronavirus uncertainty remains and private sector credit growth is still at a lower level of 8.7 per cent, but special economic zones (SEZs) and other investment reforms, including ease of doing business reforms, should be accelerated so that the cost of doing business is reduced.

Extended employment targets in the SEZs and Hi-Tech Park has to be continued at any cost, it said.

Tax audit reform and simplification is also required so that ease in paying taxes generate more willingness to pay taxes by individuals.

The tax net needs expansion and therefore the tax card system should be further enhanced to encourage and reward taxpayers.

Research and innovation were not highlighted but should become a major area for industrial development and diversification.

Skills development in some specific sectors have been targeted in the proposed budget and emphasis has been given for creating more overseas employment.