Muhith pins great hope on PPP for infrastructure development
Monday, 18 May 2009
FE Report
Finance Minister AMA Muhith Sunday laid particular emphasis on the simplification of tax measures for encouraging more people to pay tax and the greater role of the private sector in infrastructure development through public-private partnership (PPP) concept.
The finance minister said the next budget would be a blend of measures to protect the domestic economy from the onslaught of the global recession and ensure implementation of annual development programme (ADP) and the government's electoral promises.
"The budget for the next fiscal, which would be of over Tk 1.0 trillion might appear ambitious one but I don't have any reservation about it," finance minister said in a pre-budget discussion with the members of the Economic Reporters Forum (ERF) at the National Press Club in the city.
He said he would opt for budgetary measures to simplify the taxation procedures so that people feel encouraged to pay taxes. " We'll have to try to collect taxes, at least, from the holders of the tax identification numbers (TINs).
Among others, former Finance and Planning Adviser Dr AB Mirza Azizul Islam, International Chamber of Commerce, Bangladesh (ICC-B) President Mahbubur Rahman and Association of Bankers Bangladesh (ABB) president K Mahmud Sattar took part in the discussion, which was presided over by ERF president Nazmul Ahsan.
Explaining the measures in the upcoming budget the finance minister said the government would make room for public-partnership projects (PPP) to infuse dynamism in the implementation of infrastructure and energy sector projects.
A brief PPP guideline would be announced in the budget and a relevant act would come into effect from September-October 2009, the finance minister assured.
"Efforts would be taken to woo private sector entrepreneurs. It would facilitate substantial growth of the gross domestic product (GDP)," Muhith added.
The government would take necessary budgetary measures to strengthen the Anti-corruption Commission (ACC) and for the improvement of the law and order situation.
The finance minister said the state intervention into the country's commodity market would be ensured through the Trading Corporation of Bangladesh (TCB).
He put the energy crisis at the top of the list of the hurdles to the economic progress of the country. "To overcome the energy crisis we must take up coal-based projects, no matter we extract coal or not," the finance minister said.
The government has already decided to keep dual-fuel options - natural gas and coal - for all the future power plant projects, he added.
It will take time to formulate coal policy, said Mr Muhith adding, "The government would approve coal-fired power plants even before the coal policy."
The finance minister praised the past caretaker government for initiating some energy projects, which, he said, has provided some relief to the incumbent government.
In response to a concern over ensuring fair price for farmers, he said the government set the procurement price at a higher level but things were not working. He felt that the people's representatives in the local government institutions should also shoulder some responsibility in this regard.
The finance minister was also in favour of continuing the existing pre-shipment inspection (PSI) systems until a substitute procedure come across.
Addressing the function, Dr Mirza Azizul Islam said the budget should not go beyond Tk 1.16 trillion, while the revenue target should be around Tk 785 billion to meet the increased public expenditure.
He also criticized the requests coming from every corner to grant tax rebates to help weather the shocks of the global meltdown.
Tax on banks should not be reduced in the next fiscal year as most of them performed better compared to other sectors and paid attractive dividends to their shareholders, Dr Islam said.
He also opposed the proposal to raise the income tax-exemption limit at least for next two years.
The former finance adviser felt that government could allow legalising undisclosed money with penal rate of taxes.
The ICC-B president Mahbubur Rahman sought immediate adoption of the national coal policy and subsequent move to utilise the country's coal resources to mitigate the energy crisis.
He also opined for uninterrupted gas supplies to industrial units to ensure production in factories.
Taxes on banks and non-banking financial institutions should be reduced, he added.
The government should slap a minimum tax of Tk 2,500 for every business establishment to augment government's revenue earning, the ICC-B president reiterated his suggestion.
He said the government should introduce automation in customs to remove hassles faced by businessmen.
Finance Minister AMA Muhith Sunday laid particular emphasis on the simplification of tax measures for encouraging more people to pay tax and the greater role of the private sector in infrastructure development through public-private partnership (PPP) concept.
The finance minister said the next budget would be a blend of measures to protect the domestic economy from the onslaught of the global recession and ensure implementation of annual development programme (ADP) and the government's electoral promises.
"The budget for the next fiscal, which would be of over Tk 1.0 trillion might appear ambitious one but I don't have any reservation about it," finance minister said in a pre-budget discussion with the members of the Economic Reporters Forum (ERF) at the National Press Club in the city.
He said he would opt for budgetary measures to simplify the taxation procedures so that people feel encouraged to pay taxes. " We'll have to try to collect taxes, at least, from the holders of the tax identification numbers (TINs).
Among others, former Finance and Planning Adviser Dr AB Mirza Azizul Islam, International Chamber of Commerce, Bangladesh (ICC-B) President Mahbubur Rahman and Association of Bankers Bangladesh (ABB) president K Mahmud Sattar took part in the discussion, which was presided over by ERF president Nazmul Ahsan.
Explaining the measures in the upcoming budget the finance minister said the government would make room for public-partnership projects (PPP) to infuse dynamism in the implementation of infrastructure and energy sector projects.
A brief PPP guideline would be announced in the budget and a relevant act would come into effect from September-October 2009, the finance minister assured.
"Efforts would be taken to woo private sector entrepreneurs. It would facilitate substantial growth of the gross domestic product (GDP)," Muhith added.
The government would take necessary budgetary measures to strengthen the Anti-corruption Commission (ACC) and for the improvement of the law and order situation.
The finance minister said the state intervention into the country's commodity market would be ensured through the Trading Corporation of Bangladesh (TCB).
He put the energy crisis at the top of the list of the hurdles to the economic progress of the country. "To overcome the energy crisis we must take up coal-based projects, no matter we extract coal or not," the finance minister said.
The government has already decided to keep dual-fuel options - natural gas and coal - for all the future power plant projects, he added.
It will take time to formulate coal policy, said Mr Muhith adding, "The government would approve coal-fired power plants even before the coal policy."
The finance minister praised the past caretaker government for initiating some energy projects, which, he said, has provided some relief to the incumbent government.
In response to a concern over ensuring fair price for farmers, he said the government set the procurement price at a higher level but things were not working. He felt that the people's representatives in the local government institutions should also shoulder some responsibility in this regard.
The finance minister was also in favour of continuing the existing pre-shipment inspection (PSI) systems until a substitute procedure come across.
Addressing the function, Dr Mirza Azizul Islam said the budget should not go beyond Tk 1.16 trillion, while the revenue target should be around Tk 785 billion to meet the increased public expenditure.
He also criticized the requests coming from every corner to grant tax rebates to help weather the shocks of the global meltdown.
Tax on banks should not be reduced in the next fiscal year as most of them performed better compared to other sectors and paid attractive dividends to their shareholders, Dr Islam said.
He also opposed the proposal to raise the income tax-exemption limit at least for next two years.
The former finance adviser felt that government could allow legalising undisclosed money with penal rate of taxes.
The ICC-B president Mahbubur Rahman sought immediate adoption of the national coal policy and subsequent move to utilise the country's coal resources to mitigate the energy crisis.
He also opined for uninterrupted gas supplies to industrial units to ensure production in factories.
Taxes on banks and non-banking financial institutions should be reduced, he added.
The government should slap a minimum tax of Tk 2,500 for every business establishment to augment government's revenue earning, the ICC-B president reiterated his suggestion.
He said the government should introduce automation in customs to remove hassles faced by businessmen.