FBCCI demands higher private sector credit growth target

The recently announced monetary policy of Bangladesh Bank (BB) is investment-friendly but, there is a huge gap to increase investment, said Federation of Bangladesh Chamber of Commerce Industries (FBCCI).  

“Private sector credit growth target should be 17 per cent instead of 16.5 per cent to ensure pro-investment monetary policy,” said president of FBCCI Abdul Matlub Ahmad at a programme, organised by the apex trade body, at its conference room in the capital yesterday.
As per the policy, the private-sector credit growth target will remain the same at 16.5 per cent, the governor said at a press conference in the afternoon. On June 30 last year, private-sector credit grew 16.78 per cent, but in November, it declined to 15.01 per cent.
FBBCI president said at least 40 per cent of GDP would have to be invested to move into higher growth nation and achieving double digit growth. 
About rate of interest Matlub said the rate of interest in Small and Medium Entrepreneur (SME) sector should bring down to 9 per cent in view to boom the sector which will generate employment immensely.
However he alleged that the government can’t ensure their sufficient credit as well as rate of interest is still high compared to other loan.
Citing lack of recently announced monetary policy he said the central bank pointed the NPL (non performing loan) issue, but has not given clear idea about how they will address the matter.
He emphasised on immediate initiative to address the issue otherwise investment will not expedite. 
The FBCCI demanded that the National Board of Revenue should set value-added tax rate at 7 per cent lowering from the uniform 15 per cent, which is proposed at the new VAT and Supplementary Act-2012.
Matlub said that 15 per cent VAT was very high for the poor people of the country.
‘FBCCI, on behalf of the business community, officially proposes setting the rate at 7 per cent, in between the rates being followed in Malaysia and Thailand,’ he said.
The NBR should immediately work on the rate, he said.
He also said that the business community wanted to pay VAT, but not to face harassment while paying VAT.
About undisclosed money he stressed the need for effective measure to stop capital fly to foreign countries and to bring in investment. 
However he said they are yet to unaware about the amount of total undisclosed money in the country.
FBCCI president also expressed dissatisfaction over Indian anti-dumping duty imposed on the Bangladeshi jute and jute-goods exports.
The government of India on January 5 imposed anti-dumping duty ranging from $6.30 to $351.72 a tonne on import of jute and jute products from Bangladesh for the next five years.
Exports of jute and jute goods to India in the financial year 2015-16 grew by more than 150 per cent to $260.74 million from $104.51 million. 
He however said the problem will settle as business community of both sides demanding to withdraw anti-dumping duty.

FBCCI demands higher private sector credit growth target

The recently announced monetary policy of Bangladesh Bank (BB) is investment-friendly but, there is a huge gap to increase investment, said Federation of Bangladesh Chamber of Commerce Industries (FBCCI). Private sector credit growth target should be 17 per cent instead of 16.5 per cent to ensure pro-investment monetary policy, said president of FBCCI Abdul Matlub Ahmad at a programme, organised by the apex trade body, at its conference room in the capital yesterday. As per the policy, the private-sector credit growth target will remain the same at 16.5 per cent, the governor said at a press conference in the afternoon. On June 30 last year, private-sector credit grew 16.78 per cent, but in November, it declined to 15.01 per cent. FBBCI president said at least 40 per cent of GDP would have to be invested to move into higher growth nation and achieving double digit growth. About rate of interest Matlub said the rate of interest in Small and Medium Entrepreneur (SME) sector should bring down to 9 per cent in view to boom the sector whichwill generate employment immensely. However he alleged that the government cant ensure their sufficient credit as well as rate of interest is still high compared to other loan. Citing lack of recently announced monetary policy he said the central bank pointed the NPL (non performing loan) issue, but has not given clear idea about how they will address the matter. He emphasised on immediate initiative to address the issue otherwise investment will not expedite. The FBCCI demanded that the National Board of Revenue should set value-added tax rate at 7 per cent lowering from the uniform 15 per cent, which is proposed at the new VAT and Supplementary Act-2012. Matlub said that 15 per cent VAT was very high for the poor people of the country. FBCCI, on behalf of the business community, officially proposes setting the rate at 7 per cent, in between the rates being followed in Malaysia and Thailand, he said. The NBR should immediately work on the rate, he said. He also said that the business community wanted to pay VAT, but not to face harassment while paying VAT. About undisclosed money he stressed the need for effective measure to stop capital fly to foreign countries and to bring in investment. However he said they are yet to unaware about the amount of total undisclosed money in the country. FBCCI president also expressed dissatisfaction over Indian anti-dumping duty imposed on the Bangladeshi jute and jute-goods exports. The government of India on January 5 imposed anti-dumping duty ranging from $6.30 to $351.72 a tonne on import of jute and jute products from Bangladesh for the next five years. Exports of jute and jute goods to India in the financial year 2015-16 grew by more than 150 per cent to $260.74 million from $104.51 million. He however said the problem will settle as business community of both sides demanding to withdraw anti-dumping duty.