BANGLADESH

Finance Minister AMA Muhith on Thursday said the government plans to start construction work on the Padma Bridge project, the largest ever infrastructure project in the country, in the next fiscal year.
“We firmly believe, we’ll be able to start the construction work in the next fiscal year,” he told at a pre-budget discussion at Sonargaon Hotel in the city.
The Finance Minister also said he does not think there is any reason to worry about the financing of the Padma Bridge.
On GDP (gross domestic product) growth projection for the next fiscal, he said the 7.2 percent GDP growth projection should not be considered as “too much ambitious.”
On black money, Muhith said: “We didn’t show too much dependence on the black money in the previous fiscals. Since, we’ve big reforms plan regarding the stock market in the next fiscal, we don’t want to touch it.”
He indicated that investments of black money in the capital market would continue through the next fiscal year, considering the sensitive nature of the stock market. Currently, black money is allowed to be invested in stocks by paying tax at 10 percent.
The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) and the National Board of Revenue (NBR) jointly arranged the function titled ‘The 33rd Consultative Meeting of National Board of Revenue’ with AK Azad in the chair. The even was telecast live by private television channel NTV.
NBR chairman Dr Nasiruddin Ahmed, FBCCI first vice president M Jashim Uddin and vice president Mostafa Azad Chowdhury Babu, former FBCCI president Akram Hossain, BGMEA president M Shafiul Islam Mohiuddin, DCCI president Asif Ibrahim, Standard Bank chairman Kazi Akramuddin Ahmed, BARVIDA president Abdul Mannan Chowdhury, actor Elias Kanchan, and leaders of different district chambers, among others, spoke on the occasion.
Unveiling the government’s plan for the upcoming budget, Muhith said the neglected communications sector especially railways would get special allocation in the next budget to ensure smooth communication system in the country. “Railways sector remained neglected for long… we’ll look into it.”
He said the next budget will have specific directions for the next five years on the use of energy resources and electricity generation. He admitted that all the quick rental power plants could not come into generation timely.
The Finance Minister also said that the government will keep significant allocation for four areas –- skill development, maize production, poultry industry and beet sugar.
He assured the entrepreneurs that the government would consider a stimulus package for setting up Effluent Treatment Plant (ETP) in industrial areas.
About pre-shipment inspection (PSI), Muhith said: “We want to say bye to the system. Hope it will go soon.”
He said the key objective of the next budget will be to maintain the growth trend and the government will try to make a balance between demand and supply. “To maintain the balance, some may be benefited and some may be affected.”
The Finance Minister also assured the business leaders of accommodating their proposals in the next budget. “If not possible, we can bring changes after the budget placement.”
FBCCI president AK Azad sought a provision for imposing penalty with regular tax on whitening undisclosed income.
He also said the businesses do not favour the government decision allowing the investors to invest black money in stocks by merely paying tax at 10 percent.
“We’re urging the government to withdraw the proposal as it’ll surely discourage honest taxpayers and hurt them… it won’t be a good example for future either.”
The FBCCI chief said those who have undisclosed money can be brought under the income tax net through imposing appropriate penalty.
He also urged the Finance Minister to take initiatives and sit with Prime Minister Sheikh Hasina to find out a way to resolve the ongoing political conflict in the country.
“You’re a senior minister of the government… I request you to take steps to find out a solution,” he said, adding that confrontational political programmes hit the economy hard.
Azad alleged that some ‘top dogs’ shattered the country’s capital market and sought a legal provision in the next budget to bring back into the market the money they had taken out as hefty profit.
The FBCCI president also sought permission for investing abroad and urged the Finance Minister to give specific directives for that.
He said: “No Bangladeshi investor is now allowed to invest abroad…but there’s ample scope to invest in many countries, including neighboring Myanmar. We want an announcement in the next budget in this regard.”
Mostafa Azad Chowdhury Babu demanded special allocation for railways to cut pressure on roads and reduce road accidents.
Jashim Uddin said the government needs to generate additional 2000 to 3000 megawatt of electricity to achieve the projected 7.2 percent GDP growth for the next fiscal.