If big cos make puffed rice, what will smaller ones do: NBR chief

Big companies should not invest in sectors which are the bread and butter of small- and medium-sized enterprises, National Board of Revenue (NBR) Chairman Abu Hena Md Rahmatul Muneem said on Sunday.

"Large companies shouldn't engage in small businesses like making puffed rice, flattened rice, or ground spices. What will the SMEs [small and medium enterprises] do if they are in these businesses? Large companies can aim to manufacture things like buses, vehicles or helicopters. Small ventures should be left for SMEs," he said. 

Speaking at a pre-budget discussion with members of the Economic Reporters' Forum (ERF) at the NBR Building in Dhaka's Agargaon on Sunday, Muneem urged for a clear direction which will specify the kind of goods a company can produce, adding that the Ministry of Industries had been informed in this regard.

"Although at present, possibly the existing company act reserves the right of an investor taking up any venture in the country, [but] the law can be amended if required," he added. 

He said over the last few years, large companies were manufacturing and marketing products in segments dominated by SME entrepreneurs.

Representatives of SME owners had demanded they be safeguarded from this practice through government policies. 

The NBR boss also asked large conglomerates to focus investments on heavy and manufacturing industries. "But for employment, small ventures should be left for SMEs," he added.

Responding to the criticism of imposing VAT on meditation services, the NBR chairman said, "VAT on meditation should be increased further as the luxury service is enjoyed by the rich only. Poor people in the country do not engage in meditation."

The ERF also proposed increasing the tax free income to Tk5 lakh from the existing Tk3.5 lakh taking into consideration the huge inflation.

Apart from this, 22 more proposals were given by the organisation to prepare for the challenges after least-developed country graduation.

The NBR chairman also expressed hope that the tax net would widen owing to some policy measures taken by the authority. 

Economic Reporters' Forum (ERF) President Refayet Ullah Mirdha and General Secretary Abul Kashem also spoke at the discussion attended by senior NBR officials.