Budget broadly consumer- and investment-friendly: PRAN RFL chairman

Ahsan Khan Chowdhury, chairman and chief executive officer of PRAN-RFL Group, has described the proposed national budget as broadly positive, saying it is consumer-friendly and supportive of industry and investment.

He said the government has placed special emphasis on health, education and human resource development, which are critical for the sustainable development of a nation.

Chowdhury also welcomed the importance given to the agriculture sector in the budget. He noted that the proposal to withdraw value-added tax at the import stage on raw materials used in the production of fertilisers, pesticides and crop protection chemicals would help reduce farmers' production costs.

At the same time, concessional facilities for the import of raw materials for the poultry, dairy and fisheries sectors would play an important role in the development of those industries, he said. However, he added that greater allocations were needed for research, modern mechanisation and the development of agricultural technology.

Referring to concerns over rising prices following budget announcements, Chowdhury said there is often a perception among the public that the prices of all goods will increase after a budget is unveiled.

This year, however, reductions in duties have been proposed across various sectors, which he described as a positive development that would provide relief to consumers.

With people already under pressure from high inflation, he said the proposal to reduce advance tax at source on 60 essential commodities, including rice, pulses, edible oil and sugar, from 5 percent, 2 percent and 1 percent to 0.5 percent was timely. As a result, product prices would decline and consumers would benefit directly, he said.

He also welcomed the proposal to withdraw regulatory duties on all types of spices and reduce import duties on raw materials used in the production of infant food from 15 percent to 10 percent.

Chowdhury further said that the proposal to reduce duties on air conditioners, refrigerators and locally manufactured mobile phones would benefit consumers and help contain inflation.

Noting the government's substantial expenditure on fuel imports for electricity generation, he said supportive measures to promote renewable energy would play an important role in ensuring the country's future energy security.

He also viewed positively the proposal to impose a 0.2 percent advance tax on the supply of goods to retailers as part of efforts to expand the tax net.

To encourage employment and investment, the government has taken several commendable initiatives, Chowdhury said. He pointed out that advance tax on the import of industrial raw materials has been reduced from 5 percent to 4 percent, although there remains scope for further reductions over the longer term.

He said the proposal to reduce tax at source on cash incentives for export earnings from 10 percent to 5 percent, as well as the proposal to cut tax at source on interest payments on foreign loans used for industrial establishments from 20 percent to 10 percent, would encourage investment.

Chowdhury also said that increased allocations for port infrastructure development would help strengthen the country's logistics capacity.

Overall, he said, the proposed budget should be viewed as a consumer-friendly, industry-friendly and investment-friendly budget, and he welcomed it.