07 June 2014

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Joishthya 24, 1421 Shaaban 8, 1435 Regd. No. DA 6238 Vol 2, No 68

SATURDAY, JUNE 7, 2014 | www.dhakatribune.com | SECOND EDITION

AVENUE-T | ANOTHER DAY IN PARADISE

8 | STEPS TO PREVENT DIABETES

16 pages plus 24-page supplement Avenue-T | Price: Tk12

9 | FOUNDATION STONE OF MODERN INDIA

15 | ‘WC WILL BE LAMPARD SWANSONG’

Muhith upbeat about budget targets The finance minister only wants stable political environment n Asif Showkat Kallol Finance Minister AMA Muhith yesterday expressed hope to get a stable political environment ahead to achieve an economic growth of 7.3% set in the national budget for the next fiscal year. He urged all not to destabilise the situation for the sake of achieving the revenue target, boosting investment and attaining the growth target. “We will not be able to achieve the revenue target if political parties resort to violence,” he said, replying to a question at a post-budget press conference in the capital.

‘The deficit has been lower than 5% in the budgets I placed in the past, and that is an appropriate deficit’ Agriculture Minister Matia Chowdhury, Planning Minister AHM Mustafa Kamal and Information Minister Hasanul Haq Inu, among others, were present at the event. The finance minister’s budgetary measures unveiled on Thursday are being considered to be encouraging private investment as well as helping mobilise local resources to support development projects, particularly of big infrastructures. Economists and businessmen in their instant reactions to the measures apprehended that the ambitious budget would be difficult for the government to implement as the revenue target is high while investment would not take place as expected due to fears of political unrest anytime. There are apprehensions among them that given the political situation, major opposition parties like the BNP might launch agitation programmes

BangladeshMyanmar border conference begins on June 10 n Rabiul Islam A four-day director general level conference between Border Guard Bangladesh and Border Guard Police is scheduled to begin at Nay Pyi Taw in Myanmar on June 10. BGB Director General Major General Aziz Ahmed would lead an eight-member delegation at the conference. Officials concerned said a meeting with the Chief of Myanmar Border Guard Police and other officials would be held on June 10 while a joint record of discussion is likely to be signed on June 12. “We hope for positive outcome of the conference. We want to hold such meetings on regular basis,” Aziz Ahmed told the Dhaka Tribune at his office yesterday. “Our aim is to improve relationship with Myanmar and maintain peace and harmony on the border. We want to resolve any problem through discussion,” he said. The officials said the delegation would raise the issue of killing of a BGB member by Border Guard Police at Naikhangchhari in Bandarban on May 28 and demand for proper investigation  PAGE 2 COLUMN 6

anytime demanding fresh election. “Every year I am giving ambitious budget and it is being achieved excellently,” the minister replied to a questioner. “There’s no problem of being high ambitious if it can achieve success.” He expressed the confidence that revenue collection would peak up easily to provide enough fund for implementation of the development projects. Muhith faced a volley of questions about whitening undisclosed money, ambitious budget targets, and manipulation of GDP growth rate, poor allocation on agriculture,poor utilisation of foreign assistance and increased tax on gold import under baggage rules. He explained that one of the positive outcomes of formulating and implementing big national budgets is the government’s spending capacity has doubled since 2009. He said the government would be able to implement the Tk250,506 crore budget without any significant deficit as there will be no shortfall in foreign aid flow. Since the fiscal 2009-10, there has been no shortfall in foreign aid other than the slow disbursement, he added. The minister ruled out any possibility of heavy borrowing from the banking system to meet the tentative deficit of around 5% of the GDP. “The deficit has been lower than 5%in the budgets I placed in the past, and that is an appropriate deficit.” The finance minister cleverly fired putting the gun on the prime minister’s shoulder in response to a question why the tax-free income threshold was not proposed to be increased. It has not been increased as the prime minister did not want it, he said. “We do not see any country like Bangladesh that changesthe ceiling over the years.” Muhith said the government proposed small increase of taxes on mobile phone sets as the number of mobile set users is huge in a poor country like Bangladesh. l

Changes likely in income tax rules over house rent n Tribune Report The government plans to bring changes in income tax rules for realising tax on house rent as the existing rules are not enough to check tax evasion. “We will make new rules for realising tax on house rent after the passage of a finance bill,” National Board of Revenue Chairman Md Ghulam Hussain said at a post-budget press briefing yesterday. Currently, he said, there is a provision for imposing a 10% penalty in the income tax ordinance, but there will be

P2 CAPITAL FLIGHT

Finance Minister AMA Muhith addresses reporters during a post-budget press briefing at the Osmani Memorial Auditorium in the capital yesterday RAJIB DHAR

a provision for 50% fines if house owners are found guilty of not receiving the house payment of over Tk25,000 through cheque. He, however, said the government is yet to formulate any rule or policy on how to make payment of house rents through banking channel to ensure transparency in the house rent collection. In the proposed budget for the fiscal year 2014-15, Finance Minister AMA Muhith proposed that the house rent of over Tk25,000 a month should be paid through bank cheques. The rents will include service charges related to rental property. “This would bring more people under tax net while prohibiting the practice of dodging tax on earnings from rental property.” l

Muhith: No more chance to whiten black money n Syed Samiul Basher Anik

Finance Minister AMA Muhith has brushed aside any possibility of accommodating a provision for whitening black money in the budget for 2014-15 before its passage. Whitened money did not have that much impact on the economy as only a little amount, Tk340 crore, was whitened in FY2012-13, he told a post-budget press conference in the capital yesterday. “In last two years, nothing much was invested availing of the opportunity. In the last fiscal year, the government received Tk34 crore as tax on the

money whitened,” he said, adding the opportunity will not be continued from the fiscal year. The minister, in his budget speech and the finance bill 2014, did not mention anything about whether the opportunity will continue or not. “As it was not mentioned in the documents, it will not continue. I will incorporate the matter with law,” he said. During FY2013-14, the government allowed legalising undisclosed money by investing in three sectors – real estate and housing, investment in government treasury bond and investment in any productive sector by paying 10% penal

tax, in addition to normal taxes under the provisions of income tax ordinance. Article 19E of the income tax ordinance said the untaxed money can be invested in income generating sectors such as industrial enterprises, balancing, modernisation, renovation and extension of an existing industry, building, apartment, land, securities listed with stock exchanges and any trade, commercial and industrial venture engaged in production of goods and services. According to the Global Financial Integrity Report 2013, from 2009-2013, more than Tk2,098 crore was whitened in Bangladesh, against which the NBR

received only Tk279 crore in taxes. During the period of July to April this fiscal year, Tk234 crore has been whitened in different income generating sectors, according to data compiled by the NBR. The minister also said there are other ways to trace how people generated black money. “Land is the largest source of investing black money as a huge amount of money every year is being invested here. We need to think on how to remove the money and that will need discussion,” he said.  PAGE 2 COLUMN 1

CPD: 7.3% growth target unattainable

Murders have become daily chores in Lakshmipur

n Sheikh Shahariar Zaman

Jamil Khan back n Mohammad from Lakshmipur

The government set a very ambitious target for the 2014-15 fiscal year budget, but does not conform with its capacity, stated an analysis carried out by the Centre for Policy Dialogue (CPD). In the budget it is estimated that an additional $9.5 billion private investment will be needed to achieve the 7.3% growth and $4 billion foreign assistance will be received for the FY15 to finance the deficit. Debapriya Bhattacharya, distinguished fellow of the CPD, presented the analysis yesterday. Finance Minister AMA Muhith rolled out the Tk2.5 trillion budget, his sixth in a row and eighth in total, on Thursday with massive plans with no clear guidelines on how to achieve the targets. The CPD analysis also questioned the quality of public spending and justification of the continuation of the black money whitening facility. It also expressed its surprise that little attention was paid to the priorities stipulated in the election manifesto declared by the government a couple of months back. “The government has set a growth target of 7.3% and to attain that, pri-

vate investment has to grow from 21% to 25% of the GDP, which means an additional amount of around Tk75,000 crore will be needed in a single year, which is an impossible target,” Debapriya said. The government has set a high foreign assistance target of $4 billion, which is 30% higher than the revised foreign assistance target for the current fiscal, he said. Bangladesh has over $18 billion worth of foreign assistance commitments in the pipeline but due to a lack of absorption capacity, it received the highest $2.8 billion in the last fiscal. The economist said there was little reflection of political priorities stated in the election manifesto of the Awami League before the January 5 election. “I don’t see the reflection of the Awami League manifesto in the budget placed by the new government.” Debapriya said the credibility of the targets set by the government is lost as there is a gap between the targets and actual achievements. Citing examples, he said from FY1214, on an average, the gap between the proposed and actual deficit financing was about 13%.  PAGE 2 COLUMN 1

Everyone might be preoccupied with Narayanganj right now, but the southern coastal district of Lakshmipur has recently become synonymous for terror, with political murders happening virtually every other day, all seemingly unnoticed. According to Lakshmipur police, at least 42 people were killed in the district between December last year and May this year. Among the victims, 12 were lead-

INSIDE 6 | Nation

Ramadia canal in Gopalganj is shrinking day by day as vested interests have grabbed a large part of the canal and built houses and business establishments.

11 | Op-Ed

When Indian politicians started demonising and blaming each other before their national elections, I was relieved to see that members of the ruling elite in another country can also get engaged in comical mudslinging.

12 | Entertainment

This week I saw a film that requires viewer’s discretion...It felt quite uncomfortable watching a film featuring graphic rape scenes, and that too sitting with 60 people aged 50 or above.

ers and activists of the ruling Awami League, nine belonged to the BNP-Jamaat clan and three were businessmen. There are more similarities between Narayanganj and Lakshmipur. According to police and local residents, most of the reported cases of murders were the result of feuds regarding the establishment supremacy, extortion and drug trade. The latest incident was reported on Tuesday in which Ismail Hossain Khokhon, activist of the ruling party’s youth front Jubo League, was allegedly killed over a feud trying to establish suprem-

acy in Charsha union under Chandraganj police station. Abu Taher is one name that has surfaced repeatedly whenever one talked about murders in Lakshmipur. The mayor of the Lakshmipur Municipality and a leader of the ruling party, Abu Taher reportedly wants to establish his supremacy in the area; but the biggest obstacle in the way of his ambition is M Alauddin, president of the local Awami League. In December last year, 56 local Awami League leaders and activists, led  PAGE 2 COLUMN 3


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