Uncertainty in view of COVID-19 and consequent repercussions creating added pressure for Bangladesh economy.
AmCham Budget Views FY 2020-2021
Uncertainty in view of Covid-19 and consequent repercussions creating added pressure for Bangladesh economy. In the proposed national budget for the next fiscal year (FY), 2020-2021, the government has taken certain measures in support of investment or for protecting critical domestic industries in the crisis. In addition, health sector, SMEs, government infrastructure developments, air-ocean transport business, hospitality services and the related linkage goods and services will face serious consequences even after the alleviation of corona-crisis and to attract foreign direct investment (FDI). Waterways and railways development will also help the common people to reduce the cost of transportation for both goods and passengers ensuring smooth supply chain.
AmCham emphasizes on key procedural matters to the proposed budget in following notes:
●Automation and introduction of e-payment and e-TDS system
●VAT payments Lead time
●Modernization of the Customs Law and disputes
●Facilitating Foreign Direct Investment (FDI)
●Royalty Transfer, Technical know-how fees etc for Economic Zones
●Reduction of “Corporate” & “Withholding” tax rate
●Tax incentives for all business
●Special package for monetary and sector-specific measure during pandemic
●Tax incentives for capital market