Committed to PEOPLE'S RIGHT TO KNOW
Vol. 5 Num 1086 Thu. June 21, 2007  
   
Editorial


Editorial
Pull back from a retrograde step
Duty proposals on computer, telecommunication need to be dropped
It is ironical that two mutually contrary, if not contradictory, patterns of emphases should have found place in the finance and planning adviser's budgetary proposals relating to information and communication technology (ICT). He seems to identify information, telecommunication and information technology as thrust sectors judging by 21 percent higher allocation (from the revised budget) to them. But in the same breath, he proposes withdrawal of zero duty on computer and computer accessories together with that of duty exemption on telecommunication equipment, basically meaning increase of duties on these items.

The finance adviser could perhaps argue that a higher allocation necessitates some taxation; but the question is: should we take recourse to such a fiscal measure as would raise the cost of the ingredients that ICT development hinges on -- computer, its accessories, telecommunication equipment etc.

The private sector is willing and ready to participate in the field. The government's job is to provide infrastructure for it. Lately, we have added submarine cable to the infrastructure to connect with the world information super highway. Capital and major cities are connected with transmission networks of both public and private sectors. To utilise this connectivity computers are the basic tool. If their prices go up lower and middle income groups would be hard put to buy and maintain computers. And this will happen at a time when we need to take computer or internet coverage beyond Dhaka into districts and upazilas basically targeting younger generation.

ICT is a potential sector where hundreds and thousands of jobs can be created with comparatively less investment. Experts visualise that half of the jobs in the world will eventually belong to the ICT and ICT related sectors. Internship allowance is being given by the government to create an efficient workforce in IT. Elsewhere in the budget document, the finance adviser stresses IT products having priority export potential. Work on a hi-tech park has already begun.

Set against this overall background, the budgetary proposals presaging increase in the prices of computers, its accessories and telecommunication equipment call for reconsideration.