‘Time-befitting strategies needed to cut cost of doing business’

The budget should focus on time-befitting strategies in order to cut the cost of doing business and raise trade and investment competitiveness, said Rizwan Rahman, president of the Dhaka Chamber of Commerce and Industry (DCCI).

"Our national budget is critical amidst the unprecedented economic reality. Therefore, the budget should focus on strategies to support trade, industrial and economic growth."

"The budget must ensure a pro-business environment so that the private sector can overcome the current challenges and thrive."

According to Rahman, a recent study showed that 2.1 million new poor were created in recent times due to inflationary stress, in addition to 3.6 million pandemic-induced poor.

"Since the employment in the informal sector has declined heavily, the social safety net needs to continue until the economy returns to the pre-pandemic stage."

Cottage, micro, small and medium enterprises need special attention so that they can rebound and contribute to cost-efficient production. Alongside, large businesses need lower corporate tax and source tax, he said.

"There should be an equal tax treatment for all export-oriented industries and an automated taxation environment."

The DCCI chief called for a reduction in tax incidence on the current taxpayers and an automated cross-border trading system.

All districts should be brought under the tax net to broaden the revenue generation base, cutting reliance on Dhaka and Chattogram, he said.

"New revenue sources are needed to support smooth economic operation."

Rahman says higher inflation affects business competitiveness.

"Since the external market factor is, to some extent, unmanageable, we can focus on local market management strategies."

"There should be strong market monitoring and enforcement of laws to eradicate abusive practices that lead to price hike of essential commodities."

He recommends setting a rational revenue generation and expenditure target.

He lauded the government for reducing the gas tariffs for small and cottage industries.

"But that will not help much since gas is largely used by large and medium industries. A predictable, affordable and industry-friendly energy tariff is needed in the budget."

The budget should also have a strong focus on the people's purchasing power during the period of higher inflation, the business leader added.