Mind public business only
The government yesterday decided to remind public employees about service rules that prohibit involvement in profit-making activities, including stock business, without prior permission.
The public administration ministry will issue a notification to that effect in a day or two. It has already prepared a draft of the notification.
The decision came at the weekly cabinet meeting that also okayed amendments to the income tax laws to stabilise the bourses.
At the meeting, a couple of ministers drew the cabinet's attention to the huge number of government employees and their dependants being engaged in the stock business. This, the ministers observed, had been hampering public service. Besides, employees with stock investments tend to take a hostile attitude towards the government when their shares slump.
Agreeing with the observations, Prime Minister Sheikh Hasina enquired about the Government Servant (Conduct) Rules 1979 and directed the ministries concerned to remind the employees about the stipulations.
Briefing newsmen after the meeting, prime minister's press secretary Abul Kalam Azad said, “We all know that stockmarkets are risky. We also know that it is not appropriate for military and civil officials to get involved in this kind of business.”
He said the ministry concerned would soon issue a notification to that end.
Meanwhile, confusion ran high among government employees at the Bangladesh Secretariat. They said the decision was aimed at preventing them and their dependants from investing in the stockmarkets.
Contacted last night, public administration senior secretary Abdus Sobhan Sikder said, “The cabinet has directed us to remind government staff that they won't be able to engage in any business as per the service code of conduct.”
He said the ministry would circulate a notification to all the ministries and divisions in a day or two, asking them to ensure strict compliance with the code of conduct.
According to service rules, no government staff can get involved in any business without prior permission, he said, adding that a violation of the rules carries punishment.
Another top official said, “This decision will encourage the employees to withdraw from unauthorised stock business and also discourage the freshers from investing in stocks.” The government, however, will not enforce punishment immediately, he added.
Public administration sources said a draft of the notification would be sent to the Prime Minister's Office for review. After getting the go-ahead from the PMO, the ministry will issue a circular.
The draft says it has been observed in recent times that a section of government employees or family members dependent on them have been involved in business activities without permission in contravention of the Government Servant (Conduct) Rules 1979. For this, departmental action might be taken against them as per Government Servants (Discipline and Appeal) Rules 1985.
The proposed notification also says the staff will have to take prior permission to engage in any business activities other than that of government service. Those who are already into profit-making ventures without permission will have to turn in detailed accounts of their business by March 30.
CHANGES IN INCOME TAX ACT
The Income Tax Act amendments approved yesterday are meant to give some benefits to investors, steady the stockmarkets and restore the shareholders' confidence, the prime minister's press secretary said.
The cabinet approved a 10 percent tax rebate facility for investment in the stockmarket. It means a person with investment in stocks will enjoy a 10 percent rebate on his or her total tax liabilities.
The cabinet also approved the reduction of tax on brokerage commission at source by half to 0.05 percent and withdrawal of 10 percent tax on income by mutual funds.
The government had earlier withdrawn the tax rebate facility, doubled the tax on commission for brokerage houses to 0.1 percent and imposed a 10 percent tax on mutual funds in the current fiscal year.
The decisions taken and disclosed previously to lift the troubled stockmarket and investors' confidence needed the cabinet's approval as the issues were related to the income tax laws.
The cabinet yesterday also approved the draft Human Trafficking Prevention and Protection Act 2012, which provides for capital punishment for the heinous offence. Besides, it extended the Law and Order Disrupting Crimes (speedy trial) (amendment) Act for another two years.
In 2010, the cabinet had extended the Speedy Trial Act.
The press secretary said the cabinet yesterday also endorsed the recommendations of the National Wages and Productivity Commission, 2010, which proposed monthly lowest wages of Tk 4,175 and highest Tk 5,600 for a worker.
It also proposed 50 percent of the basic salary as house rent, Tk 700 as medical allowance, Tk 150 as conveyance and Tk 150 as tiffin allowance every month for a worker with two festival bonuses every year.
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