American Chamber of Commerce in Bangladesh (AmCham) expressed concerns over the 15 percent standard rate for value added tax which will create negative impact on imported goods.

In reaction to the proposed budget on Thursday, the AmCham mentioned that regulate this tax to exempt essential products, noting that foreign investors would be affected by the increased turnover tax and supplementary duty (SD) in several sectors.

“We believe that the budget formulation and implementation should be handled by separate entities to maintain the integrity and address key challenges, including declining foreign exchange reserves, the balance of payment deficits, energy sector demand-supply imbalances, and the struggling banking sector,” said AmCham President Syed Ershad Ahmed.

AmCham also stressed the need for the central bank to collaborate with the government and policymakers to implement effective measures for controlling inflation and maintaining a stable macro-economy.

Addressing these issues requires a holistic approach that includes monetary policy adjustments, fiscal discipline, promoting foreign direct investment and exports, and fostering long-term structural changes through stakeholder engagement and collaboration.

“We should focus on harnessing the demographic dividend by developing potential human capital, ensuring quality STEM and vocational education to enhance remittances by sending skilled manpower overseas,” Ahmed added.

As Bangladesh navigates rapidly evolving global phenomena, strategic and effective policies supported by adaptability are crucial to encourage technology transfer and the creation of high-value products and services, making Bangladesh a prominent business hub and fostering sustainable economic development.