Duty cut won't bring good result for inflation: BEA
Friday, 15 June 2007
The reduction of import duty on lentil and edible oil, as proposed in the new budget, would not bring any good anti-inflationary result, reports UNB.
Bangladesh Economic Association (BEA) came up with the view in its post-budget reaction and suggestions at a press conference at the Dhaka Reporters Unity (DRU) auditorium in the city Thursday.
BEA general secretary Abul Barkat read out a written statement on behalf of the association.
The BEA felt that there is no chance to stop the price-spiral of essentials even if the import of rice and wheat is doubled, as the prices of these items are rising in the world market.
Barkat, in the written statement, criticised the government for not having any strong work-plan to bring down the prices of essentials at a tolerable level.
The BEA underscored the need for establishing financial good governance apart from slashing down import duty.
It identified 10 reasons for continued price-hike, which include an active integrated syndicate, breakdown of supply chain, inadequate stock in government godowns, weak monitoring of the demand-supply situation and adverse situation in the international market.
Criticising the government stance that 'in the free market economy the government has nothing to do', BEA president Qazi Kholiquzzaman Ahmad said: "This is not a responsible answer. There should be a monitoring system and the government must also enact a Consumer Rights Protection Act as soon as possible."
He mentioned that the measures so far taken to control the price-hike are all Dhaka-based. "The inflation is much higher in the rural areas than in the urban areas," he said.
Kholiquzzaman regretted the government's decision to raise the kerosene price and said: "This is totally against the concept of poverty reduction."
BEA termed the proposed new duty structure for import as a drawback for the local industries. It said that due to the slashing of infrastructure development surcharge, import duties of around 2,600 items would decrease but in most cases there would be nothing good for the poor people.
Barkat questioned the rationale of the proposed withdrawal of zero duty facility from nearly 400 items, mostly industrial raw materials and capital machinery. "Even the government proposed to withdraw zero duty on garments and textile machinery," he said.
Qazi Kholiquzzaman termed the issuance of SRO to legalise the undisclosed money earned in legal ways as a non-transparent system.
The BEA does not support the move, as this is quite contrary to the current drive against corruption, he said.
Barkat stressed the need for bringing the undisclosed money into the productive cycle, not merely for buying flats, lands or cars. "But in the present structure of the economy it's very difficult," he said.
Bangladesh Economic Association (BEA) came up with the view in its post-budget reaction and suggestions at a press conference at the Dhaka Reporters Unity (DRU) auditorium in the city Thursday.
BEA general secretary Abul Barkat read out a written statement on behalf of the association.
The BEA felt that there is no chance to stop the price-spiral of essentials even if the import of rice and wheat is doubled, as the prices of these items are rising in the world market.
Barkat, in the written statement, criticised the government for not having any strong work-plan to bring down the prices of essentials at a tolerable level.
The BEA underscored the need for establishing financial good governance apart from slashing down import duty.
It identified 10 reasons for continued price-hike, which include an active integrated syndicate, breakdown of supply chain, inadequate stock in government godowns, weak monitoring of the demand-supply situation and adverse situation in the international market.
Criticising the government stance that 'in the free market economy the government has nothing to do', BEA president Qazi Kholiquzzaman Ahmad said: "This is not a responsible answer. There should be a monitoring system and the government must also enact a Consumer Rights Protection Act as soon as possible."
He mentioned that the measures so far taken to control the price-hike are all Dhaka-based. "The inflation is much higher in the rural areas than in the urban areas," he said.
Kholiquzzaman regretted the government's decision to raise the kerosene price and said: "This is totally against the concept of poverty reduction."
BEA termed the proposed new duty structure for import as a drawback for the local industries. It said that due to the slashing of infrastructure development surcharge, import duties of around 2,600 items would decrease but in most cases there would be nothing good for the poor people.
Barkat questioned the rationale of the proposed withdrawal of zero duty facility from nearly 400 items, mostly industrial raw materials and capital machinery. "Even the government proposed to withdraw zero duty on garments and textile machinery," he said.
Qazi Kholiquzzaman termed the issuance of SRO to legalise the undisclosed money earned in legal ways as a non-transparent system.
The BEA does not support the move, as this is quite contrary to the current drive against corruption, he said.
Barkat stressed the need for bringing the undisclosed money into the productive cycle, not merely for buying flats, lands or cars. "But in the present structure of the economy it's very difficult," he said.