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Curtailing subsidies

February 06, 2010 00:00:00


The highest priority of the government should be to bring law and order situation under control. The next in priority should be containing the spiralling up of the price of food and daily necessities. And the government should turn its attention to the unnecessary subsidies which it pays even to the better-off section of the population.
The government should curtail subsidies on domestic electricity charges, petrol, octane and natural gas. A flat levy of Tk.5 per litre on petrol and octane can help a long way in providing the government much needed revenue. Similarly, a fuel surcharge at progressive rates may be imposed on domestic consumption of electricity .
There could be at a levy at a flat rate of Tk. 0.50 per KWh of electricity consumed per month for up to the first 500KWh. From the next 501 to 1000KWh, it should be at Tk 02 per KWh. For household consumption beyond 1000 KWh per month, the surcharge could be Tk. 3.50 per KWh. Beyond 4000KWh, a penal levy of Tk.5.00 per KWh may be introduced for the total electricity consumed.

Engr.S.A.Mansoor
Gulshan, Dhaka

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