Businesses on Sunday urged the government to ensure predictability of policy for making short and medium term business plan.
At a luncheon meeting organised by Foreign Investors’ Chamber of Commerce and Industry held at Westin Hotel in the city, they said that in the new budget the government introduced very high tax rate.
Businesses questioned that whether the government conducted any comprehensive study that the high tax rate would give any benefit to the businesspeople.
‘If we do not have clarity of 3-5 years horizon it is very much difficult for us to start and preparing investment policy for our companies,’ Foreign Investors’ Chamber of Commerce and Industry president Shehzad Munim said.
He said that predictability of policy was very much important because business people were used to making short and medium term plan.
‘The tax regime needs to be predictable. The taxation rate and other conditions of tariff should have a trend that the investors could take into account that this is the government policy for the couple of years,’ prime minister’s economic affairs adviser Mashiur Rahman said.
He said that there were possibilities of the development of new industries in the country.
The investors themselves were best indicators of what possibilities were there, Mashiur said.
‘Look at the tariff policy and development of new industries and the kind of policy support in terms of access to credit and risk sharing need to be taken in to account,’ the adviser said.
He also said the medium industries which were going in to knowledge-based new industries need more special care by the government.
Mashiur emphasised on the diversification of economy and said if the country was depend only one or two industry, the country would become vulnerable to the buyers as buyers get upper hand over seller because there were too much to sale but buyers were few.
Citing the development of Vietnam, the adviser said the efficiency level of Vietnam was higher in terms of output per hour per person as their education was strong.
‘We need to be in a position to compete the country and the secret of the capacity for competition is the development of the working end population,’ Mashiur said.
The adviser expressed his concern over the contents and quality of education saying that secondary level technical education had not expanded to the extent it should have.
He said that medium industries have been faced trouble due to lack of adequately trained people for their mid-level management and mid-level technical work.
FICCI vice-president Francois de Maricourt also spoke at the event.
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