The Metropolitan Chamber of Commerce and Industry, Dhaka (MCCI) has urged the government to formulate policies in the next budget for creating jobs in the country. In an editorial comment in the latest issue of its monthly publication, Chamber News, the MCCI also suggested continuation of fiscal and tariff incentives like tax holiday facility.

The chamber recommended withdrawal of supplementary duties like infrastructure development surcharge and advance income tax in the coming budget. The chamber has strongly urged the government to stop the recurring losses suffered by state-owned enterprises (SoEs) and also to stop giving subsidies to such companies.

The chamber suggested review and withdrawal of the ad hoc changes made in the tax rules/restrictions on the corporate sector. “The process of tax reduction for both corporate and personal assessees should be continued for better tax compliance,” it noted.

Revenue collection during the first seven months of the current fiscal year increased only 9.1 percent as compared to 22 percent in the corresponding period last year. Foreign funding was also lower during the first seven months amounting to only one-third of the committed funds. Similarly, resources must be spared for solution of some of the crucial problems of the agriculture sector.

The MCCI said under the current budget, 56 percent of the total budgetary outlay is due to be spent on poverty alleviation. These include allocations for various social safety net programmes, special credit programmes for micro-enterprises, construction of roads and rural infrastructures, cheap loans to farmers for the production of certain selected crops and so on.

Similarly, the setback in agriculture production should also be reviewed carefully. Scarcity of agriculture inputs and power crisis are serious threats to agriculture and agriculture-related enterprises. The chamber further urged the government to totally withdraw the discretionary power given to tax officials.