Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) today supported the provision in the proposed budget for fiscal year 2009-10 to allow whitening of black money in exchange for payment of 10 percent tax.

"The budget has addressed many of the concerns we placed before the government in pre-budget talks," FBCCI president Annisul Huq said at a budget review meeting on Saturday. "The government has initiated some steps to cushion the onslaught of global recession," said Huq.

Business leaders from all sectors joined Huq in lauding the finance minister's proposed budget for FY2009-10, presented Thursday in parliament, for its pro-business and pro-people aspects. But, Huq said: "Not all of our proposals, which should be executed urgently for the economic development of the country, carried weight in the proposed budget."

"The government has levied a 10 percent tax for undisclosed money, to be invested in certain industries, while we propose the tax be revised down to seven percent." "But as the tax is so high, I expect the culture of black money will die out within three years," the chief of the country's apex business body said.

The unprecedented three-year 'money whitening' scheme has drawn resounding flak from analysts, public and other political parties since its announcement in Thursday's budget speech.

Huq on Saturday urged political parties to "shun the long practice of rejecting a proposed budget just for the sake of opposition". "Such a culture needs changing. We should accept the good, and advise how to rectify the bad," he said.

The FBCCI boss, in a written statement, thanked the government for its generous allocations for public-private partnership initiatives, information technology, infrastructure, human resources development, health and family planning and social safety nets. But he feared a Tk 34,000 crore budget deficit, to be partly financed by bank loans, might constrain the loan flow to the private sector.

He also said cars and microbuses up to 1500cc and 2000cc respectively should be considered as daily necessities instead of terming them 'luxury items' and raising import duty on them.

Speaking at a post-budget press conference at the Federation Bhaban, FBCCI President Annisul Huq today said this is a business- as well as industry-friendly budget. He expressed satisfaction, as most of their recommendations were included in the proposed budget.