Wednesday, June 10, 2009

FBCCI fears less private investment on high revenue target

The apex trade body has feared a less domestic private investment because of the high revenue target in the upcoming budget.

"We came to know unofficially that the government would fix an 11 per cent revenue earning growth next fiscal year. If it is correct, it would hurt private investment since people would no more feel encouraged to invest money," MA Rouf Chowdhury, a director of Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), told a meeting with the National Defence College (NDC) at the Federation Bhaban in Dhaka yesterday.

A 51-member NDC delegation led by Lieutenant General Sina Ibn Jamali, commandant of NDC, attended the meeting. The delegation also included defence officers from 11 other countries of the world, including Malaysia, Saudi Arabia, Sudan, Indonesia, and India.

According to media reports the government has targeted Tk 61,000 crore revenue earnings for the next fiscal, a 15 per cent higher than the Tk 53,000 crore revised revenue target of the previous fiscal.

On foreign direct investment (FDI), Rouf Chowdhury, also president of Bangladesh Vegetable Oil Refiners Association, said, "We have also heard of a possible withdrawal of tax holiday facilities from some sectors. It will also hamper FDI inflow."

The FBCCI leaders also emphasised enhancing regional trade to create a prosperous South Asia.

Though 25-26 years have passed since the inception of Saarc, the volume of regional trade among the member countries is still bellow five per cent, said Aftab-ul-Islam, another director of FBCCI.

The business leaders also urged the Saarc members to put emphasis more on multilateral trade instead of bilateral trade.

During the meeting, different issues ranging from transit, bilateral and regional trade, women empowerment and ongoing global financial crisis came up for discussion.

Jamali said the visit to FBCCI is a part of their curriculum. He also gave a briefing on NDC.

Abu Alam Chowdhury, acting president of FBCCI, also spoke.
(source: The Daily Star)

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