"We have to devise mechanism to raise domestic tax collection on priority basis. Dependence on foreign aid will be minimised if we can increase revenue collection," he said.

He requested the stakeholders to consider the revenue impact of the proposals for inclusion in the national budget 2010-2011.

The NBR chief made this request in the first pre-budget meeting with the stakeholders in agriculture sector at NBR premises.

Dr Ahmed said revenue collection is the first priority of the revenue board while encouraging more investment is second.

Pre-budget proposals should be prepared focusing on overall economic growth, he said.

"We will scrutinise all proposals prioritising protection of domestic industries and development of the agriculture sector," he said.

In the pre-budget discussion, Bangladesh Agro-processing Association (BAPA) has placed three separate proposals for income tax, value added tax (VAT) and customs department.

It has proposed tax holiday facility for seven agro-processing industries that include-automatic rice mills, snacks, tomato pulp (paste sauce, ketchup), juice, powdered spices, pickles (tamarind, olive, lemon), pulses processing industries, puffed and flattened rice, and mustered oil.

The association also sought continuation of tax holiday facility for 2010-2015 period for agricultural industries.

"The agriculture sector has been facing uneven competition in the international market due to withdrawal of tax holiday facility in 2008," the BAPA proposal said.

It has sought tax exemption from export earning of agro-processing industries, waiver of 3.0 per cent customs duty on capital machinery import of the industries, reduction of tariff value to Tk 53 per kilogram powdered milk from existing Tk 100, waiver of VAT at business stage for some essential commodities.

BAPA also proposed to set tariff value instead of 15 per cent VAT on production stage of pickles, sauce, pulses, nuts, chanachur processing industries.