Three-pronged strategy to help stabilise prices: Aziz

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Mirza Azizul Islam speaks at the post-budget press conference Saturday.

FE Report
Finance and planning adviser Mirza Azizul Islam Saturday defended the budgetary changes, saying the non-party caretaker government has not adjusted tariffs buckling to the pressure from the private sector lobbyists.
"There's no question of pressure from the private sector … Tariff adjustment is transitional," the finance adviser told a post-budget press conference in the city.
"Tariff has been adjusted mainly on intermediate goods, not on finished goods. Eventually, we need to bring down the protection level. However, the overall protection has come down," the former United Nations economist said.
Islam was briefing the local media about the latest changes in the national budget (2007-08) that he said would help generate employment and stabilise the prices of essentials. In his speech, the finance adviser also responded to the critics' views on the budget.
The finance ministry, which asked for comments from the public on the proposed budget, received around 1800 comments on the national budget, already approved by President Iajuddin Ahmed.
Rebuking the critics who said the budgetary proposals lack the roadmap for stabilising the commodity prices, the finance chief reiterated that a three-pronged strategy would help keep prices of daily necessities stable.
On this score, he said the duty cut on the imports of food items has started to pay dividends and the prices of all varieties of rice, edible oil and garlic have gone down.
He noted that the prices of rice came down between 3.77 per cent and 3.81 per cent, while those of wheat and lentil remained stable.
Islam said the prices of powdered milk has gone up, thanks mainly to the price hike in the international market.
He expressed the hope that the duty reduction on the bulk imports of powered milk would keep the prices of the item stable in the local market.
He dismissed the fear of potential disruption in the pace of industrialisation as "not objective" and said the budgetary measures will benefit consumers and others.
Responding to a question, the finance adviser said no punitive action will be taken against the individuals or businessmen who will pay taxes by July 31.
"An NBR (National Board of Revenue) circular in this regard has made it clear that there will be no action against the taxpayers who will pay taxes within the stipulated time," he told a questioner.
In his intervention, NBR chairman Badiur Rahman said: "Payment of taxes has many fajilats (incentives). There's nothing to be feared. Rather, those who will pay taxes by July 31 will be exempted from any legal action."
But he warned the income tax authorities would slap penalties upto 250 per cent on the delinquent taxpayers after July 31.
He said that the revenue target for the next fiscal, which is 17 per cent higher than that of the last fiscal, would be achieved if the people from all walks of life extended their support.
The finance adviser said the government has attached top priority to the budget implementation and the ministries are charting out their respective roadmaps in this regard.
"Even the Chief Adviser himself will monitor the implementation of budget and the annual development programme," he pointed out.
Asked if the interim government would constitute a permanent pay commission to discourage the government officials to take recourse to corruption, the finance adviser said he would consider the matter in future.
But he pointed out that the financial insolvency on the part of bureaucrats should not be the excuse for indulging in graft.
"There's no relation between financial insolvency and graft. It's an issue of morality," was the reply of the finance adviser.