Steps on way to let TCB thrive in full vigour
Friday, 16 April 2010
Doulot Akter Mala
The government has taken all-out steps to strengthen Trading Corporation of Bangladesh (TCB) and expedite formation of anti-monopoly laws to rein in essential prices ahead of the holy Ramadan.
The Prime Minister's Office (PMO) has instructed the National Board of Revenue (NBR) and the finance ministry not to keep the TCB imported goods stuck in ports for tax stalemates.
The instruction came at a recent meeting on inflation, especially a review of food price situation, chaired by adviser on establishment and administrative affairs to the prime minister's office HT Imam, following a directive from prime minister Sheikh Hasina.
Economic affairs adviser to the PMO Mashiur Rahman, finance secretary Md Tareq, TCB chairman Md. Khalilur Rahman, deputy governor of Bangladesh Bank Ziaul Hassan Siddique, among others, attended the meeting.
Experts and policymakers have observed that performance of TCB is not satisfactory as it is struggling with poor manpower strength to compete with the private importers and sellers.
The PMO has asked the NBR not to hold up TCB imported goods for reasons of advance income tax and Value Added tax (VAT). It has directed the revenue board to collect the taxes later for maintaining smooth supply of TCB imported goods.
It has also asked TCB to build an adequate stock of gram, edible oil, onion and sugar ahead of the holy Ramadan through import or local purchase.
"TCB has been running its business activities in a traditional way rather than acquiring professionalism. It can recruit skilled professionals attaching specific conditions to turn the state-owned entity into a profitable and competitive body," the working paper of the meeting said.
Experts at the meeting also stressed formation of an anti-hoarding law and an anti-monopoly or competition law pointing out the lack of punitive measures for hoarding, as well as the time-limit for stock of essentials.
The finance ministry will increase fund allocation or amount of guarantee to increase supply of TCB imported products for stabilising essentials prices, the working paper said.
Currently, the government has a storage of around 580,000 tonnes of rice and 126,000 tonnes of wheat. It has also a budget to import an additional 0.3 million tonnes of rice for the current fiscal.
The government will also scale up the supply of food gains in the coming months to stabilise its price, the paper said.
A mass awareness campaign will be launched to increase consumption of other kinds of pulses instead of lentil and reduce dependence on rice encouraging consumption of potatoes, wheat and vegetables, it said.
The government has taken all-out steps to strengthen Trading Corporation of Bangladesh (TCB) and expedite formation of anti-monopoly laws to rein in essential prices ahead of the holy Ramadan.
The Prime Minister's Office (PMO) has instructed the National Board of Revenue (NBR) and the finance ministry not to keep the TCB imported goods stuck in ports for tax stalemates.
The instruction came at a recent meeting on inflation, especially a review of food price situation, chaired by adviser on establishment and administrative affairs to the prime minister's office HT Imam, following a directive from prime minister Sheikh Hasina.
Economic affairs adviser to the PMO Mashiur Rahman, finance secretary Md Tareq, TCB chairman Md. Khalilur Rahman, deputy governor of Bangladesh Bank Ziaul Hassan Siddique, among others, attended the meeting.
Experts and policymakers have observed that performance of TCB is not satisfactory as it is struggling with poor manpower strength to compete with the private importers and sellers.
The PMO has asked the NBR not to hold up TCB imported goods for reasons of advance income tax and Value Added tax (VAT). It has directed the revenue board to collect the taxes later for maintaining smooth supply of TCB imported goods.
It has also asked TCB to build an adequate stock of gram, edible oil, onion and sugar ahead of the holy Ramadan through import or local purchase.
"TCB has been running its business activities in a traditional way rather than acquiring professionalism. It can recruit skilled professionals attaching specific conditions to turn the state-owned entity into a profitable and competitive body," the working paper of the meeting said.
Experts at the meeting also stressed formation of an anti-hoarding law and an anti-monopoly or competition law pointing out the lack of punitive measures for hoarding, as well as the time-limit for stock of essentials.
The finance ministry will increase fund allocation or amount of guarantee to increase supply of TCB imported products for stabilising essentials prices, the working paper said.
Currently, the government has a storage of around 580,000 tonnes of rice and 126,000 tonnes of wheat. It has also a budget to import an additional 0.3 million tonnes of rice for the current fiscal.
The government will also scale up the supply of food gains in the coming months to stabilise its price, the paper said.
A mass awareness campaign will be launched to increase consumption of other kinds of pulses instead of lentil and reduce dependence on rice encouraging consumption of potatoes, wheat and vegetables, it said.