The Transparency International Bangladesh (TIB) has expressed its deep concern over the absence of the 'promised' measures in the proposed budget for fiscal year (FY) 2018-2019 to reform the country's ailing banking sector.
In a press statement, TIB Executive Director (ED) Dr. Iftekharuzzaman, termed the proposal cut in the corporate tax rates of banks 'unconstitutional and discriminatory'.
He said failure to initiate reform measures for banking sector that is mired in graft and all sorts of irregularities was a breach of promise made with the depositors.
Dr. Iftekhar also strongly condemned the move to continue the subsidies to the loss-making state-owned entities (SoEs) and veiled opportunities to whiten 'black money'.
He also alleged that the budget for the FY2019 lacks the expected level of transparency and called for enhanced monitoring to ensure transparency and accountability in the budget execution.
He felt that the government has failed to bring the people responsible for creating a chaotic situation in the banking system and bring the same under an accountability process.
The TIB ED further said the opportunity to legalise undisclosed money by paying penal tax would discourage the practice of honesty.
He said many measures proposed in the budget to enhance tax on many basic necessities would put pressure on the people belonging to the middle- and lower-income classes.
"Ultimately, it would lead to further widening of income inequalities."
Dr. Iftekhar also said the budget lacks enough fiscal directions for creating employment for the growing number of unemployed youths in the country.
The local chapter of the Berlin-based Transparency International, however, hailed the proposal for enhancing allocations for social protection.
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