Chittagong Metropolitan Chamber of Commerce and Industry in its budget reaction said 1 per cent tax at source proposed in the budget for FY 2015-16 would have a negative impact on exports. Vice-president of the CMCCI AM Mahbub Chowdhury made the comment on the budget proposals. He said the lion’s share of the export earnings comes from the RMG (ready-made garment) sector. So, imposition of source tax on RMG is illogical, he added. RMG owners have shouldered wage enhancement of the workers while garment owners are facing problems adjusting with compliances enforced by foreign buyers, Mr Mahbub said. Huge interest incurred on bank loan, factories run on diesel-run generators due to lack of adequate electricity and political instability have pushed the industry people at their back because foreign buyers offer orders at reduced prices. On the other hand, the ports have enhanced charges threefold, he added. Many factories will face closure if the existing source tax is further increased, he said, adding that this would force many garment manufacturers to cut their workforce. The CMCCI vice-president, however, thanked the government for placing a robust budget with the target of ADP (annual development programme) at Tk 970.00 billion and GDP (gross domestic product) at 7.1 per cent. Former CCCI president Farid Ahmed said this budget is not appropriate for changing lot of 160 million people of the country. “It is the budget that would make the rich people richer and the poor people poorer. It is the budget from which looters of the society would gain most,” he said in an instant reaction. There is no step in the budget to encourage the rural economy and generate employment for millions of people in rural areas. “I cannot understand the justification of such a huge budget with a deficit of Tk 890 billion,” he said.
Source: https://www.thefinancialexpress-bd.com/2015/06/07/95602
