Implement policies, SROs equitably

A leading trade body urged the government to implement policies, instructions and SROs (statutory regulatory orders) equitably and timely for ease of doing business, as any mismatch does them a disservice.

"We get stuck to when the question of implementation of these orders come," said Metropolitan Chamber of Commerce and Industry, Dhaka (MCCI) president Nihad Kabir while making the plea in a meeting with finance minister AMA Muhith at his secretariat office Sunday.

She said, "We can assure you we will perform our best if you can implement the existing laws equitably and justly."

Ms Kabir mentioned that many of provisions in the finance bill become effective from the very first day of placing the budget in parliament but some take effect one year later.

"Our proposal is to ensure all taxation-related provisions be effective prospectively. Nothing should be retrospective," she said.

The MCCI president urged the government to make sure that taxes do not come as further pressure on businesspeople since new VAT (value-added tax) law could not be implemented in last budget.

Due to deferring VAT-law enforcement a big gap will be created between government's revenue collection and target set in the current fiscal budget.

Citing a lack of proper coordination among different government bodies she said foreign ambassadors even do not get response to their letters from the National Board of Revenue (NBR) a year after sending those.

Bangladesh Investment Development Authority (BIDA) is entrusted with the responsibility to look after all the issues relating to investment and business promotion. But the BIDA will not be able to ensure these things, the trade body noted.

It was pointed out that MCCI is a member of the advisory committee of different government bodies, including the Bangladesh Securities and Exchange Commission. The last meeting of such an advisory committee held was seven years back.

If they sit regularly, they can get proper feedback from private sector that can help the government in preparing annual budget easily, the chamber leader said.

MCCI vice-president Golam Mainuddin urged the finance minister to keep several rates of VAT instead of a uniform rate as set in the new VAT act set on the sidelines pending enforcement.

The minister agreed. A single rate of VAT would not be introduced as differences in VAT collection between the existing slabs are very high, he said.

Regarding implementation of various taxation-related provisions prospectively Mr Muhith said the retrospective effect of finance-bill provisions is happening based on old practice.

"It's a very old tradition. I am not sure if we can change it. I have consulted it with senior officials," he told the chamber delegation.

After the meeting was over, Mr Muhith, replying to newsmen, said not single-rate VAT will be introduced in the country rather there will be multiple rates.

Regarding nationalisation of schools, as teachers are demonstrating in the capital, the finance minister said the government has no capacity to nationalise all at a time.

A policy was formed to nationalise the schools and "as a responsibility we are doing so gradually. We shall continue."

He dubbed the demands, made by the teachers, "absurd".

The minister, replying another query, termed the monthly pay order (MPO) scheme for educational institutions a "bad policy".

"I want reform (of the system). Reform is not taking place. So, I kept it pending," he told the reporters.

But the minister said this year he will approve MPO of some schools by setting conditions. "I will earmark certain percent development of infrastructures of educational institutions to get MPO."

A meeting will be held soon for MPO inclusion, but the minister wouldn't confirm the date.

MCCI committee member M Anis Ud Dowla and Francois de Maricourt also spoke, among others, on the occasion.

[email protected]