The country’s apex trade body in its primary reaction on Thursday said the budget implementation will get easier once the tax administration behaves friendly with businesspeople in realising tax and VAT (value added tax).

 

“As per our primary analysis, it seems that the budget is business-friendly one,” FBCCI President Abdul Mutlub Ahmed told reporters at the Federation Bhaban.

 

He said the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) will come up with its detailed observations through a formal press conference on Friday morning.

 

“We’re analyzing how much we’ll be affected or how much we’ll be benefited with the budget,” UNB quoted the FBCCI chief as saying.

 

Mutlub said this is the biggest budget in Bangladesh’s history but its success depends on its proper implementation.

 

He thanked the government for taking the small and medium industries (SMEs) into consideration.

 

“This opportunity (given to SMEs) will help the businesspeople prepare for the new VAT act. It will help restore friendly relations between the government and the businesspeople,” he added.

 

The government has decided not to fully implement the new Value Added Tax and Supplementary Duty Act, 2012 from the next financial year.

 

Rather, the government has decided to fully implement the new Act from July 1 of 2017.

 

The Finance Minister, in his budget speech, said the new VAT Act is one of the best piece of legislations for mobilization of internal resources.

 

But the business community has to come forward to take the fullest benefit of this Act, he said adding that they have to improve their accounting practices at different stages of transactions.

 

“I urge upon the business community to come forward and maintain proper books of accounts at every stage of their transaction and use this additional one year time to get themselves acquainted with the new system,” said the Finance Minister.

 

The FBCCI chief hailed the government for making special allocations for 10 mega projects.

 

FBCCI Vice President Md Shafiul Islam Mohiuddin and other FBCCI leaders were present.