Finance minister AMA Muhith on Thursday said the provision for making black money white would continue in the next budget. He also said the expected GDP growth is unlikely to be achieved because of the “anarchic situation” in the country.
Muhith claimed that the existing provision for whitening black money is of international standards. “Black money exists everywhere, even in America. The share of black money in Bangladesh’s economy would be 40 to 80 per cent. Maximum black money exists in the real estate sector,” he added.
The finance minister was addressing the 34th consultation meeting of the National Board of Revenue (NBR) at Sonargaon Hotel.
Muhith said the budget for the next year would be most difficult for him as the economic trends, which had been continuing since the beginning of this government in the last four years, were hampered in the past couple of months.
“With the positive trend in economy prevailing in the last four years, I had thought that we would be able to declare a good budget. But we are no longer in that position due to anarchic situation in the country,” Muhith said.
“Earlier, various aspects of budget were clear about this time of year. But this year I cannot say that very confidently because of latest political developments in the country,” he added.
The finance minister said there would hardly be any major changes in the upcoming national budget as it was the last year of the present government. He, however, assured the country’s business leaders that some of their recommendations would be reflected in the budget declaration which is scheduled to be placed in Parliament on June 10.
These recommendations include incentives for effluent treatment plant (ETP), tax reduction in some sectors, compulsory TIN for issuing trade licenses and redundancy in VAT system, he hinted.
Muhith said the tenure for pre-shipment inspection (PSI) would not be extended while Tk. 5,000 crore allocation for Padma Multipurpose Bridge (PMB) project would continue in the upcoming budget. The percentage of the share of PMB in future budget would reduce gradually with the rising volume of the national budget, he pointed out.
Regarding various demands from the business community, the finance minister pointed out that business leaders always suggest lowering of tariff and duties. “But we are the least tax-paying nation in the world,” he added.
On the question of widening VAT and tax net, Muhith said the government has tried its best in this regard.
He also refuted the idea of reducing rate of interest in bank loan as the government no longer fixed the rate because the system was withdrawn in 2003.
The finance minister said he had some ideas to bring substantial changes in corporate tax sector but abandoned the thinking at it would not be wise at the end of government’s tenure.
Industries minister Dilip Barua, who was the special guest, called upon the finance minister to prepare a local industry friendly duty structure in the budget.
He pointed out that the newly established local industries should get protection from the state. The rate of interest of bank loans for the industrial sector should also be in single digit.
The industry minister hoped that the set of recommendation submitted by his ministry would be reflected in the coming budget. Barua observed that a third industrial revolution is taking place in the world and Bangladesh should also reap the benefits. He observed that the last four budgets had contributed a lot in development of industries in the country.
The meeting was jointly organised by the NBR and apex trade body FBCCI (Federation of Bangladesh Chamber of Commerce and Industries) for hearing the proposals and recommendations from business leaders and chamber bodies.
NBR chairman Ghulam Hossain moderated the meeting. FBCCI president Kazi Akramuddin Ahmed and top chamber leaders also addressed the gathering.
-With The Independent input
