FY25 budget disappointing, lacks reforms to boost economy: IBFB

The International Business Forum of Bangladesh (IBFB) has expressed disappointment over the absence of significant reforms in the FY2024-25 budget to boost the economy.

Humayun Rashid, president of the IBFB, today said, "As the country's economy is going through a transitional period, I expected more reforms in the budget to implement the goal of Smart Bangladesh. However, I did not see any guidelines for reforms."

The IBFB president emphasised the urgent need for reforms in policy formulation and the revenue collection system to boost the economy. He called for an increase in the tax-to-GDP ratio, broadening the tax base, enhancing online tax processes, and expanding tax offices to upazilas.

He also stressed the necessity of strengthening the partnership between the public and private sectors to effectively implement the budget.

Talking on the issue of inflation, Humayun said, "Achieving economic targets while reducing inflation rate is a huge challenge. It is imperative to curb inflation to prevent further hardship for the common people."

He further highlighted the pressure on the country's macroeconomic indicators and the revenue collection process due to the global economic situation. He also criticised the proposed budget for setting a high total revenue collection target of Tk5.41 trillion while reducing non-tax and non-revenue income targets.

Humayun Rashid suggested that increasing revenue targets for government agencies and corporations could alleviate pressure on the National Board of Revenue.

In the meeting, the former chairman of NBR and the advisor of the organisation Muhammad Abdul Mazid said, "In the next fiscal year, illegal wealth can be legalised without question by paying 15% tax. But if there is an opportunity to whiten black money, common people will not want to become taxpayers again."