Economists suggest energy solution
Economists in a pre-budget discussion have suggested giving area-wise instead of countrywide subsidy and energy incentives to small and medium entrepreneurs for at least next two years.
The economists also urged the government to impose capital gain tax on the banks and city congestion tax to reduce traffic jam. They made the call yesterday at the pre-budget discussion with Finance Minister AMA Muhith held at the Finance Division.
Former finance adviser of the caretaker government M Hafizuddin Khan said the government should form a commission to find out why the ADP could not be implemented and suggest remedies.
A large number of entrepreneurs and households are producing electricity due to ongoing power crisis using diesel-run generators, which eat up a huge amount of fuel.
Hafizuddin said the government could consider setting up a diesel-run power plant for the capital.
Centre for Policy Dialogue (CPD) Executive Director Mustafizur Rahman said there is no possibility of power deficiency being overcome in next two years as per the government plan.
The government should give energy subsidy to small and medium entrepreneurs for at least two years to make up for the losses incurred due to power crunch.
The government is going to take a big size ADP but the finance minister's budget speech should spell out which ways the ADP would be implemented.
BIDS Research Director Rushidan Islam suggested formulation of a special scheme for areas affected by climate change and disasters. She said the government could make allocations for coastal employment schemes and disaster insurance schemes in the next budget.
She added before giving any privilege to the readymade garments factory owners, the government should ensure that the workers are given proper wages and other facilities.
Former governor of Bangladesh Bank M Farash Uddin suggested formation of an accreditation council to improve quality of education in the public and private universities. He said the council must be given sufficient independence.
Agricultural economist Mahbub Hossain said the price of agricultural equipment has fallen much in the international market. So, instead of giving countrywide agricultural subsidy, he suggested subsidy for selected areas.
Chartered accountant Mashih Malik Chowdhury said capital gain tax should be imposed on the banks as they are making huge profit by investing in the share market.
He said at present the tax rate on the banks is 42.5 percent, but if their profit on share market is taken into account, the rate of real tax on them goes down to below 20 percent.
Malik suggested imposition of city congestion tax to reduce traffic jam.
CPD researcher Fahmida Khatun said budgetary allocation should be made for rainwater harvesting to combat water crisis.
Former finance secretary Mir Mostafizur Rahman recommended stopping scope to whiten black money in the next budget. "For God's sake, stop giving scope to whiten black money by giving some tax on purchasing house and cars," he said.
M Motiul Islam, chairman of Industrial and Infrastructure Development Finance Co Ltd, former adviser of the caretaker government Prof Jamilur Reza Chowdhury, former president of Bangladesh Economic Association Dr Qazi Kholiquzzman Ahmed, BIDS Director General MK Mujeri, Prof Khandker Bazlul Haque and Prof Ashrafuddin from Dhaka University, BIDS Research Director Protima Paul, Prof Nurul Islam from Buet, and CPD researcher Uttam Kumar Dev also spoke.
Bangladesh Bank Governor Dr Atiur Rahman, Finance Secretary Dr Mohammad Tareq, Chairman of the National Board of Revenue Dr Nasiruddin Ahmed, ERD Secretary Musharraf Hossain Bhuiyan and Banking Division Secretary Shafiqur Rahman Patwari were present.
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