Muhith still upbeat about 6pc growth

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FE Report
The government still sticks to its projected economic growth at 6.0 per cent for the fiscal year (FY) 2010, despite scaling down of the rate to 5.5 per cent by the Asian Development Bank (ADB) in its latest economic update on Bangladesh.
"Whatever their (ADB's) projection is, we are still upbeat about the projected growth rate for the current fiscal," finance minister AMA Muhith said Thursday.
The finance minister further said he would place the country's half-yearly financial statement in parliament on March 16, in which a 6.0 per cent growth has been displayed.
The country's overall macroeconomic performance, the government's revenue expenditure and revenue earnings along with its development expenditure in the first two quarters of this fiscal would be presented before the house, the minister added.
When asked, Mr. Muhith said most of the macroeconomic indicators seem impressive, as the agriculture sector has made positive advancement, domestic demand is 'very high' and export orders are on the rise.
The finance minister, however, voiced his concern at inflation.
"Still, inflation remains a major area of concern and there is a need to be cautious about it, despite the fact that the global petroleum prices have yet to gallop, Mr. Muhith said.
He also reiterated that non-completion of the proposed policy guideline on the Public Private Partnership (PPP) is another bottleneck.
The finance minister was talking to newsmen after a meeting with a delegation of the Dhaka Chamber of Commerce and Industry (DCCI), led by its president Abul Kasem Khan, at the Secretariat.
During the meeting the chamber leaders put forward some proposals including imposition of higher rate of tax on legalisation, if necessary, of undisclosed (black) money, the finance minister informed the media.
When his comment was sought on the proposal, Mr. Muhith said: "As I said earlier, I am not in favour of giving any opportunity to whiten back or undisclosed income… but if such an opportunity is mulled, especially for the sake of investment, it needs to be considered."
Among others, the DCCI leaders has also made some 'good' proposals including introduction of a 'tax card system' in order to provide the tax payers with direct incentives and other services and extension of the tax-exemption facility for new industrial units, he said.
The DCCI has also suggested that the government should take steps so that the customs stations in border areas remain open round-the-clock to facilitate the country's export-import trade with India, he mentioned.
According to DCCI, it also made some other proposals including ensuring the country's energy security, widening the government's tax net and enhancement of the investment-GDP ratio by at least 40 per cent from the present level of 25 per cent for helping achieve an 8.0 per cent economic growth by 2013.
"Energy security is the most important element that needs to be addressed by the policy planners," the chamber said, stressing the need for using alternative sources of energy including turning to coal and coal-based energy strategy for the country's economic development.
Referring to a recent declaration of National Board of Revenue (NBR) regarding submission of 22 categories of files of both individuals and companies under Self Assessment System, it said it would cause unnecessary harassment of tax payers, as the same situation is also prevailing in the case of VAT (value added tax).
DCCI also suggested immediate formulation of the PPP guideline in order to facilitate implementation of projects, especially for infrastructure, under the partnership model.