Originally published on Dhaka Tribune.
Respondents believe IT and e-commerce sector requires proper budgetary support.
More than half of the country’s entrepreneurs are indifferent to the new budget while over 60% doubtful over its implementation, according to a new study.
After finalisation of budget for FY16, LightCastle Partners – a business data firm that works at the intersection of market data and company specifics – conducted a survey on entrepreneurs’ views on the new budget using their proprietary online survey platform.
The study said as many as 52.6% entrepreneurs in general are indifferent about budget outcomes with some complaining about VAT imposition on e-commerce sector. However, withdrawal of proposed VAT has contributed to relief on the part of e-commerce entrepreneurs.
Fifty two per cent entrepreneurs are indifferent and 42% dissatisfied about taxation structure, the report said.
Indifference signifies positivity here as the government endeavored to reduce tax burden on companies, especially those willing to enlist in the local stock exchange. The government’s withdrawal of some VAT and taxes in the finalised budget lessened dissatisfaction among respondents.
Respondents believe IT and e-commerce sector requires proper budgetary support followed by agro-processing and transportation sectors. About the government’s ability to implement budget, 63% were doubtful, the report said.
Lack of confidence is probably due to slower ADP implementation track record which hovered around 60-65% level and slow implementation of flagship infrastructure projects like Padma Multipurpose Bridge, it said.
It said education is the most preferred sector for additional budget allocation followed by transport infrastructure and power.
In general, entrepreneurs recognized the importance of investments in education for contributing to human capital as well as potential for growth wrought about by greater connectivity and power availability, the report said.
Respondents have been carefully chosen from diverse sectors with special emphasis on those entrepreneurs operating in the digital space, said LightCastle Partners.