Next budget will be encouraging for private sector: Finance minister

The upcoming national budget would be encouraging for the private sector, Finance Minister Abul Hassan Mahmood Ali said today (10 March).

He also hoped that the economic growth momentum would continue towards achieving the growth targets.  

The minister said this while addressing the "DCCI Pre-budget discussion: private sector perspective" as the chief guest organised by Dhaka Chamber of Commerce & Industry (DCCI) in association with Samakal and Channel 24 at a city hotel.

The government would consider all the rational recommendations from the private sector, he said.  

Mentioning that the private sector is playing a key role in the development of the country, Mahmood  Ali said the government is firmly committed to facilitate the private sector so that they can do their businesses in a hassle-free manner.

He said the government has taken various policy measures including market monitoring for which inflation would come down soon.

Mahmood Ali also informed that the government would positively consider necessary policy reforms in the next budget. 

"Moreover, long-term strategy, skills development, support to import substitute industry, export diversification, internal resource mobilization and employment generation will get priority in the next budget," he added.

The finance minister further said this government is a pro-business government and any rational recommendation from the private sector would be considered.  

Speaking at the event, National Board of Revenue (NBR) Chairman Abu Hena Md Rahmatul Muneem said the government has to strike a balance between expansion of tax net and tax burden.  

He informed that in 2020, the total individual tax payers were only 21 lakh and in February 2024 it was 37 lakh. 

"NBR also took initiative of integrated automated system in tax collection with a view to expanding the revenue collection. In June 2020, TIN holders were 2 lakhs whereas in March 2024 it stood more than 5 lakhs," he added.

Secretary of Financial Institutions Division Sheikh Mohammad Salim Ullah put emphasis on increasing investment.

"Private sector mainly generates the large portion of employments in the country," he said, adding that work is on to frame policy framework to reduce Non Performing Loans (NPLs) and the government is working on to constitute asset management ventures.  

"In order to establish good governance in the overall financial sector, a roadmap has been prepared," he informed.  

Salim Ullah also said that for economic development of a country, an efficient private sector is crucial.

He urged the private sector to concentrate on cost effectiveness and new innovation.  

Abul Kalam Azad, former Principal Secretary to the prime minister, emphasised on policy consistency so that foreign investors can plan for a long time while investing in Bangladesh.

He also underscored the importance of simplification of the taxation system to increase the revenue collection.  

Deputy Governor of Bangladesh Bank Dr Md Habibur Rahman said inflation, stability of exchange rate, reducing NPL are a few of the priorities at this moment.

He said it is important to ensure the credit flow to the private sector for better industrialization and employment generation. "Our economy is private sector-led economy and 80% of our credit flow goes to the private sector."

The discussions were divided into four important sessions: Tax and VAT, Financial Sector, Infrastructure sector and Industry & Trade sector.

DCCI President Ashraf Ahmed moderated and chaired the discussion.