BANGLADESH

State-owned Power Development Board (PDB) has proposed to the energy watchdog to increase the retail electricity tariff by 57 percent per unit (each kilowatt hour).

The PDB also urged Bangladesh Energy Regulatory Commission (BERC) to make the proposed rate effective from July 1.

BERC member Selim Mahmud told bdnews24.com on Monday that the final decision on the power tariff would be made after holding an open meeting and a public hearing.

He also said besides the PDB, four power-distribution companies have proposed a 55 percent increase per unit on average in the retail power tariff.

The companies are Dhaka Power Distribution Company Ltd (DPDC), Dhaka Electric Supply Company Ltd (DESCO), Rural Electrification Board (REB) and West Zone Power Distribution Company Limited (WZOPDCO).

On June 6, the PDB proposed to the BERC to raise electricity tariff at bulk level by 50 percent per unit. The PDB officials had said at the time that the retail power tariff needed a 30 percent raise.

The PDB in the latest proposal asked the BERC to fix the outer limit bar for lifeline tariff or compulsory minimum charge for residential consumers from 100 units to 60 units to tide over government's losses.

Bulk and retail power prices were hiked only on Mar 29 by Tk 0.28 and Tk 0.30 per unit respectively with teroactive effect from Mar 1.

Both the bulk and retail power tariffs have been increased twice this year.

State-run Bangladesh Oil, Gas and Mineral Corporation (Petrobangla) on May 24 wrote to the energy watchdog to increase gas prices, except at the domestic consumer level.

Jatiya Party MP Anisul Islam Mahmud urged the Finance Minister to reconsider proposals to impose tax at source on bank interest and not to increase minimum income tax ceiling to Tk 3,000 from Tk 2,000.

The former Fooreign Minister was reviewing the budget for the next fiscal in Parliament Monday.

Mahmud proposed that source of income should be disclosed when when tax evaders whiten their money.

The government should mobilise foreign assistance to reduce pressure on bank borrowing as there is $16 billion foreign aid in the pipeline, he added.

About export tax at source, he said it should be retained at existing 0.6 percent instead of the proposed 1.2 percent.

The proposed Tk 1.917-trillion national budget for 2012-13 fiscal will deepen economic crisis and discrimination between rich and poor, BNP has said.

BNP Standing Committee Member M K Anwar came up with the party's formal reaction to the proposed budget at a press conference at party chairperson's political office in Gulshan on Monday.

He also said that the budget proposals highlighted hopes and aspirations for masses, but it did not mention any specific way for their implementation.

"None of the government's targets will be achieved [in the proposed budget]. As a result, the discrimination between the poor and rich will deepen further. The inflation will also not come down."

On June 7, Finance Minister AMA Muhith placed the budget in parliament for the next fiscal projecting a 7.2 percent GDP growth amid the boycott by the opposition. The proposed budget is scheduled to be passed on June 28.

A former agriculture minister himself, Anwar termed corruption and lack of good governance as main obstacles to development.

He said though the size of the budget is not too big compared to the necessity of the country, it would be very difficult to implement it due to its poor ability to finance, incompetent administration and lack of political goodwill.

He stressed the need for political stability for implementation of the budget and overcome the economic challenges.