Abdur Rahim Harmachhi
bdnews24.com Senior Correspondent
Dhaka, April 23 (bdnews24.com) – Bangladesh Better Business Forum Wednesday asked authorities to cut penalty on undeclared money to legalise and put an offer of a 10-year tax break for fresh industrial investment in the next budget.
The BBBF made 114 recommendations, which were finalised at a meeting with chief adviser Fakhruddin Ahmed in his office. The recommendations were divided into four categories on the basis of duration for implementation.
The forum stressed making the process of legalising undeclared money easier for people in a bid to speed up the economy.
It made six recommendations in the first category for immediate implementation: five on small and medium enterprises and one on information and communications technology. Related organisations have been asked to put them into immediate effect.
Boosting funds for the SME sector in line with banks and other financial institutions' demand, opening services centres for easy access to SME loans and opening separate desks to attract women entrepreneurs were among the six recommendations.
The Bangladesh Bank will implement the SME-related recommendations.
The BBBF made 43 recommendations to implement in two months' time and 42 in six months. Twenty-three other recommendations in the fourth category will be implemented after further discussion with the working groups.
Fazlul Hoque, president of Bangladesh Knitwear Manufacturers and Exporters Association and member of the BBBF, told bdnews24.com that the recommendations had been made and categorised after reviewing the suggestions of the forum's five working groups.
The BBBF called for related ministries, divisions and agencies to implement the recommendations, he said.
The BBBF recommended that the next budget should include a tax break for new investment. The tax break for information technology was recommended to be extended for five more years.
The forum asked the central bank to follow a production-oriented monetary policy to rein in inflation.
In line with the recommendations, Bangladesh Bank will intensify a monitoring system to ensure that banks bring the interest rate spread down to less than 5 percent.
Tax holiday, legalising undeclared money, company registration, trade licence, value added tax and interest rate cuts are among the 43 recommendations meant for implementation in two months.
Export development, making the import system easier, investment and tax systems-related recommendations were in the third category expected to be implemented in six months.
Bangladesh Bank will be responsible for implementing 16 recommendations, including bank interest-related issues. The National Board of Revenue will implement 13 recommendations.
Fazlul Hoque said the BBBF would sit in mid-May to review progress in implementation.
The 38-member forum, comprising representatives from both government and nongovernmental organisations, was formed on Nov 25 last year with chief adviser Fakhruddin Ahmed as its chief.
The BBBF has five working groups - the business finance, infrastructure, macroeconomic policy, business entry and operations, and skill development.
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