The Foreign Investors' Chamber of Commerce and Industry (FICCI) termed the 2012-13 national budget proposed by the finance minister on Thursday, is somewhat bold and challenging at the backdrop of global economic recession. The chamber appreciates the measures especially the budget allocation for energy and power, communication and education sectors, according to a press release. FICCI in its press release said the projected borrowing apparently from banking sector will have affect credit flows to private sector and may cause liquidity problem. However, the Foreign Chamber feels that it will require strong monitoring to achieve the goals set in the budget. It has appreciated efforts to tighten the provision for the whitening of untaxed money, measures to improve capital market reducing the tax rate of merchant bank and brokerage house and introducing the provision for exemption of tax from dividend income. The Foreign Chamber has expressed its concern about the dependence of budget on foreign aid and loan from local source largely from banking sector, introduction of transfer pricing, imposition of 2 per cent tax on the gross bill of mobile phone which will affect 90 million people. The chamber also expressed its concern on withdrawal of the charging of minimum tax at 0.5 per cent of companies gross receipts irrespective of profit or loss, rationalisation of deduction of VAT at source and simplification of the procedure of price declaration, withdrawal of supplementary duty on locally manufactured products and withdrawal of the provision regarding inadmissibility of bonus royalty and technical know-how fees. FICCI feels that the proposed budget with necessary amendments will improve the socio-economic condition of the country.

News: The Independent/ Bangladesh/ 9-Jun-2012