Comitted to PEOPLE'S RIGHT TO KNOW
Vol. 4 Num 19 Mon. June 16, 2003  
   
Letters to Editor


On Budget 2003-2004


The withdrawal of VAT on travel agencies has got nothing to do with boosting tourism in the country, not even in the slightest sense. If government thinks that it's just and proper to withdraw VAT on travel agencies, it has every right to do so; but it has got no scope to correlating, withdrawal of the said VAT with boosting of tourism in the country. It's a gross mistake to do so.

Yes, it will boost tourism in other countries in the expense of Bangladesh foreign exchequers, as Bangladeshis will now feel more tempted to fly abroad on tourism purpose. It may have some positive impacts on manpower business. Let's hope for the better.

Slashing of import duties on alcohol from 592.19 per cent to 430.25 per cent will have little impact on boosting tourism in Bangladesh. Foreign tourists do not come to this country to taste the taste of alcohol. In fact, their expenditure on drinking alcohol, while in Bangladesh, accounts for an insignificant part of their travelling budget. What concern them more, while taking decision, whether to visit or not to visit Bangladesh, are the existing exorbitant room tariffs at international standard hotels in this country.

Government tax plus service charge, in Bangladesh, on international standard hotels is to the tune of 42.5%. It is 15.5% in Malaysia, 21% in Thailand and 20% in India. The annual foreign exchange earning of Malaysia, Singapore, Indonesia, and Thailand from their respective tourism sector are ten to forty folds more than the foreign exchange Bangladesh earns a year from the remittances sent by its expatriate workers.

Thanks a lot to our Finance Minister for at least mentioning the words 'boosting of tourism' in the budget. The very mentioning has broken the taboo on thinking as to the development of tourism on the part of our national policy makers. It's a good sign, and we hope that if government does not do some thing for the 'real' boosting of tourism in this country, through the ensuing amendments of the budget, before it (the budget) gets the thump up the National Assembly, the next year budget will certainly contain some good news for the sector.

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Most of the budget reaction appears as mindset remarks. Considering the resource constraint, limitation in our capacities and initiative, also the pressure groups, our government cannot make a budget of their own choice. One should appreciate the factors that influence a budget preparation. Every government tries to some extent to give it a proper shot.

Calling the budget 'anti-people', discriminatory, poor bashing, does not sound thoughtful. Like in one daily put it on the following day of budget preparation, all the banners or placards to hail or reject the budget were made ready before its presentation. If you analyse the tone of the remarks or the sentences used by some political parties is the same as last year or even before 10 years. What can we call it, intellect or attitude!

If the projected growth rate of 5.5 can be achieved it will be an achievement over last budget, if it is implemented properly it could go up to 6% some one even projected.

ADP historically remains as under-utilised, what is being utilised also a big chunk of it drained as corruption and wastage. Education sector always enjoyed the biggest allocation but the dilapidated conditions and quality tells us something else. What we need most is discipline and some ethics.

M M Haque, Jeddah, K.S.A

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When I first saw the 100 per cent point reduction in the duty on alcohol, my first thought was that perhaps there is too large a black market currently and as a result to reduce the size of the black market and increase government revenues the government must have reduced the duty. But Mr. Finance Minister has come up with an unacceptable reason to reduce the duty, sighting the attempt to attract more tourists to the country by reducing the duties on alcohol.

I am sorry to disagree with you Mr. Finance Minister but don't you think that tourists do not come to Bangladesh and stay in Dhaka because of the poor socio-economic situation, the deteriorating law and order situation, constant political bickering and the terribly high costs associated with spending time in Dhaka? And the high costs are not because of the costs of alcohol but because both Sonargaon and Sheraton Hotel do not use any local items in an attempt to reduce costs.

Sonargoan bring every single item listed in the F&B department from abroad, thus pushing up costs by at least 20%. I think improving the quality of the local commodities and thereby encouraging the big hotels to use these commodities would make it cheaper for tourists to stay in Bangladesh at the premium hotels at a much lower cost than anywhere in Nepal!

Mohammad Arbaaz Nayeem, Mastermind School, Dhaka

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Budget for the fiscal year 2003-04 has bewildered the common people of the country. Now it seems that bread is dearer than wine. I would like to ask our Honorable Finance Minister that how many people in our country, has the ability to drink or purchase diamonds. Sir I think you are forgetting that that Bangladesh is still an under developed country and many people starve the day without food.

A dramatic increase has been noticed on the duty of wide ranged everyday necessities. In these consequences it will be impossible for the middle and lower classes of the country to survive. As because there is increase on the revenues but the income of the masses are still unchanged and cannot adopt to these ascending changes. I think it will be wise for our Finance Ministry to answer in which direction our economy is heading for.

Our Finance Minister included in his speech that he has noticed a silent revolution in fields of fisheries and livestock. Though a revolution took place but fishes are out of imagination of a common man. He added there was a substantial increase on the production of milk, though an increase has been levied on the price of the commodity.

Our Finance Ministry should take a closer look at the lives of the common people of the country and then should proceed with their present decision. I am afraid with the current budget many citizens of the country would be coined as financially unfit.

Khalid Rahman, Dhaka

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