FBCCI at joint press conference
:: Staff Correspondent ::
The Federation of Bangladesh Chamber of Commerce and Industry (FBCCI), a leading organization of traders, said that all kinds of negotiation will be held with the government to save the housing sector. It was said at a joint press conference of nine business organizations including the FBCCI at the conference room of the Federation Building in the city on Saturday on the national budget of FY 2017-18. In the press conference, the FBCCI believes that the excise duty on deposits in the proposed budget has been increased. That’s why depositors will be discouraged to keep deposit in Banks. At the same time, the government’s dependence on banks to meet the deficit in the proposed budget will reduce the flow of credit to the productive sector.
In the press conference, Dr. Kazi Ertaza Hassan said about housing sector, Real estate sector will be hazardous due to imposing VAT at 15% rate instead of 1.5%,2.5% and 3.5% in case of selling flat in different size (As per Square feet) or constructing building. He said also that there are many sub-sectors that are implicated to the Sector, such as- Iron, Steel, ceramic and cement industries etc. Notable, the present condition of real-estate sector is not good at all. The number of flat of this sector is still unsold. We are proposing to impose VAT at considerable rate to protect the sector. As the member of BLDA, we assure of holding all kinds of negotiation to save the sector. Besides he recommended reducing VAT to overcome the distress situation of the Recondition car import sector. In the written statement, FBCCI president Shafiul Islam Mohiuddin said that the banks are conducting transactions for investment and employment as well as overall business activities.
Excise duty has been increased in the budget to keep the bank deposited. It will discourage the depositor to deposit. There is also the possibility of going to the informal channel without going to the bank channel which is not good for the economy.
800 taka will be required as VAT for 1 lak to 10 lak which is 500 in present time. 2500 taka will be required as vat 10 lak to 1 crore taka which is 1500 in present. 12000 taka will be required for vat 1 crore to 5 crore which is 7500 in present. For up great of taka 5 crore will cut 25000 taka per year which is 15000 taka in present.
In this meeting were also present BKMEA president AKM Selim Osman MP, president of BD Plastic product producer and exporter association Md. Jashim Uddin, BGMEA President Md. Siddiqur Rahman, Dhaka Chamber President Abul kashem Khan, Chittagong chamber president Mahbubul Alam, President of Metropolitan Chamber of commerce and Industry Nihad Kabir and President of Dhaka Bangladesh chamber of Industry Mostofa Azad Chowdhury.