'Exploiters of agri-sector can be brought under tax net'
Thursday, 22 April 2010
FE Report
Former Bangladesh Bank Governor Dr Farash Uddin Ahmed Wednesday said organisations making a hefty profit by commercially exploiting the country's agriculture sector could be brought under the tax net.
He made the comment at a meeting on 'Millennium Development Goals 1: Poverty Eradication' organised by Bangladesh Unnayan Parishad (BUP), a non-profit organisation, in the city.
Palli Karma Sahayak Foundation (PKSF) chairman Qazi Kholiquzzaman Ahmad presented the keynote paper, while lawmaker Mostafa Faruk Mohammad, deputy director of United Nations Millennium Campaign Minar Pimple and PKSF managing director Mesbah Uddin Ahmed spoke.
Farash Uddin said the agriculture sector contributes around 20 per cent to the gross domestic product although 48 per cent of the country's workforce is employed in the sector.
"We have to increase their productivity so as to scale up their contributions to the national economy," he said.
He said the country's farmers have never won the debate over fair prices. "So, the market prices should be fixed on the cost of production."
The former governor said Bangladesh should try to eradicate poverty instead of alleviating it, as the latter process keeps millions in the poverty-trap.
"As a result, the poor remain poor, which will only give the micro-credit organisations scope to lend them at a higher interest rate."
He said organisations exploiting the agriculture sector could be brought under the tax net.
He added Bangladesh would not be able to eradicate poverty without growth based on specific policies.
Minar Pimple said the income poverty could not be seen from a narrow point of view. "We have to work to achieve the two-dollar-per day benchmark."
The UN official said corruption and leakage in budgetary implementation have to be looked into, as poorer regions across the world sometimes see poorer implementation.
"Bangladesh has tremendous opportunity to achieve poverty eradication goal as the last five years of MDGs tenure coincides with the country's own journey to achieve Vision 2020."
"In Bangladesh, accountability of the demand side governance has to be ensured, local officers have to be held accountable for non-delivery and the media have to monitor what has been achieved and what not," said Mr Pimple adding that the role of elected lawmakers would be central.
Kholiquzzaman said to achieve the key MDG target, Bangladesh must bring down the rate of poverty by 50 per cent from the level of 1990.
In Bangladesh around 40 per cent of the population lived below the poverty line in 2005. Cyclones Aila, Sidr and two subsequent floods also dragged a large number of people below the line, he said.
"We will have to bring down that rate to 30 per cent in the next five years to reach the target. It will require hard work."
Mr Kholiquzzaman, also an economist, said the government has to heed to the present situation of child and woman population and particularly the ethnic groups to achieve the target.
He said Bangladesh has to reshuffle its economy to leave the open market economy behind in order to concentrate on people-centred development for pulling off real economic progress.
"The government has to emphasis on agriculture and implement its policies to boost rural economy," said Kholiquzzaman.
Former Bangladesh Bank Governor Dr Farash Uddin Ahmed Wednesday said organisations making a hefty profit by commercially exploiting the country's agriculture sector could be brought under the tax net.
He made the comment at a meeting on 'Millennium Development Goals 1: Poverty Eradication' organised by Bangladesh Unnayan Parishad (BUP), a non-profit organisation, in the city.
Palli Karma Sahayak Foundation (PKSF) chairman Qazi Kholiquzzaman Ahmad presented the keynote paper, while lawmaker Mostafa Faruk Mohammad, deputy director of United Nations Millennium Campaign Minar Pimple and PKSF managing director Mesbah Uddin Ahmed spoke.
Farash Uddin said the agriculture sector contributes around 20 per cent to the gross domestic product although 48 per cent of the country's workforce is employed in the sector.
"We have to increase their productivity so as to scale up their contributions to the national economy," he said.
He said the country's farmers have never won the debate over fair prices. "So, the market prices should be fixed on the cost of production."
The former governor said Bangladesh should try to eradicate poverty instead of alleviating it, as the latter process keeps millions in the poverty-trap.
"As a result, the poor remain poor, which will only give the micro-credit organisations scope to lend them at a higher interest rate."
He said organisations exploiting the agriculture sector could be brought under the tax net.
He added Bangladesh would not be able to eradicate poverty without growth based on specific policies.
Minar Pimple said the income poverty could not be seen from a narrow point of view. "We have to work to achieve the two-dollar-per day benchmark."
The UN official said corruption and leakage in budgetary implementation have to be looked into, as poorer regions across the world sometimes see poorer implementation.
"Bangladesh has tremendous opportunity to achieve poverty eradication goal as the last five years of MDGs tenure coincides with the country's own journey to achieve Vision 2020."
"In Bangladesh, accountability of the demand side governance has to be ensured, local officers have to be held accountable for non-delivery and the media have to monitor what has been achieved and what not," said Mr Pimple adding that the role of elected lawmakers would be central.
Kholiquzzaman said to achieve the key MDG target, Bangladesh must bring down the rate of poverty by 50 per cent from the level of 1990.
In Bangladesh around 40 per cent of the population lived below the poverty line in 2005. Cyclones Aila, Sidr and two subsequent floods also dragged a large number of people below the line, he said.
"We will have to bring down that rate to 30 per cent in the next five years to reach the target. It will require hard work."
Mr Kholiquzzaman, also an economist, said the government has to heed to the present situation of child and woman population and particularly the ethnic groups to achieve the target.
He said Bangladesh has to reshuffle its economy to leave the open market economy behind in order to concentrate on people-centred development for pulling off real economic progress.
"The government has to emphasis on agriculture and implement its policies to boost rural economy," said Kholiquzzaman.