The Foreign Investors' Chamber of Commerce & Industry's (FICCI) said the 8.2 percent growth rate target in the fiscal year 2020-21 budget will be challenging.
Against the backdrop of the virus crisis, the FICCI also thinks that the allocation in health sector and social security and welfare could have been more.
In a budget reaction Friday, the chamber appreciated the move for corporate tax reduction.
Reduction of Corporate Tax rate of non-publicly traded companies from 35 percent to 32.5 percent will encourage industrialization and foreign direct investment in Bangladesh, hoped the chamber.
The apex chamber of multinational companies doing business in Bangladesh also welcomed raising tax-free income threshold and reduction of tax rate, which it said will "give much needed breathing space to taxpayers fighting the virus-led recession."
The chamber appreciated reduction in Advance Tax (AT) on imported raw materials for manufacturing industries. The FICCI said allowing 80 percent VAT rebate on transportation service as input credit is a good move.
Meantime, the FICCI expressed its concern over some issues including limiting the valid promotional expenses of the company up to 0.5 percent disclosed turnover and reduction ceiling of overseas travelling expenditure to 0.5 percent from 1.25 percent.
The FICCI is also concerned about introducing 2 percent withholding taxes on local supply of essential commodities like rice, flour, potato, garlic and onion through local letter of credit.
The chamber also urged the finance minister to reconsider the black money whitening scopes.
The chamber with 210 members is operating in a wide spectrum of manufacturing, trading and service businesses and has been playing a catalytic role in development of the country.