Speakers at a roundtable held to discuss key considerations for economically strategic sectors in the upcoming FY 2024-25 National Budget highlighted the importance of consistency in policymaking to ensure sustainable revenue growth. The roundtable titled, “National Budget 2024-25: Priorities for High-potential Sectors,” organized by Policy Exchange, and held on May 6, 2024, brought together distinguished luminaries from both the private and public sectors, to deliberate on how the upcoming budget should fare for strategically important sectors for the economy, amidst prevalent macroeconomic issues.  

Dr. M Masrur Reaz, Chairman and CEO of Policy Exchange presented the welcome remarks at the roundtable as he dissected the current macroeconomic realities and opined on ensuring pragmatic policies for both robust fiscal positions as well as for important economic sectors such as agriculture, tobacco, RMG, FMCG, digital economy and other high value industries.   

He said, “Fiscal policy needs to be targeted and focused on helping high potential sector to grow and to leverage important sources of revenue growth while ensuring wellbeing of the citizens. For instance, the tobacco sector, which constitutes about 12-13% of the total domestic revenue, has one of the highest tax incidences in the world - above the WHO recommended level. However, the prices of locally manufactured cigarettes are one of the lowest in the world. In order to deter people from smoking and ensuring sustainable revenue growth, prices of cigarettes belonging to all segments must be increased.”

Moreover, the policies should reflect the government’s ambition of achieving its goal of export/economic diversification along with facilitating the growth of high potential and emerging sectors.

Dr. F H Ansarey, Managing Director, ACI Agribusiness stated, "The government must focus on three critical areas in relation to the agricultural sector: Environment and climate change, food value chain, and technology. There should be coordination between the government and private sector in addressing these issues. While the country produces enough, the problem lies with the supply chain. It is essential that the budget provides clear guidance on these matters."

Abdul Mannan Patwary, a former member of the National Board of Revenue (NBR), opined, “The NBR must make rational and realistic decisions. It is crucial to eliminate inconsistencies in the VAT Act. If the intended purposes of the laws are not being met, then there is no benefit, and they only complicate matters for the average taxpayer. Removing these inconsistencies would increase revenue collection.”

“We need to consider the poor. The government has policies aimed at reducing the risks for impoverished individuals. Many low-income people smoke cheaper cigarettes, which pose significant health risks. To discourage smoking among the poor, the price of low segment cigarettes should be increased. This is something the NBR should consider seriously,” he added.

Wahidur Rahman Sharif, Managing Director, Digicon Technologies Ltd and President, Bangladesh Association of Contact Center and Outsourcing (BACCO), called for the continuation of tax exemptions for the digital sector. He stated, "Imposing taxes on the growing digital economy will limit its potential and fall behind neighbouring countries. If local companies are not given advantage, foreign companies will seize the opportunity and thereby hinder the development of local expertise."

Former Vice-Chancellor of Bangladesh Agricultural University (BAU), Professor Dr. Lutful Hassan, said, "Our objective in agriculture should be to increase exports and reduce imports. Subsidies should be provided as much as possible."

Former Secretary of Ministry of Commerce and CEO of Institute of Chartered Accountants Bangladesh, Shubhashish Bose commented, "The tax system needs to be digitalised which will make everyone more inclined towards paying taxes. Reducing reliance on indirect taxes as much as possible will be beneficial. A coordinated plan is necessary, with a strong emphasis on digital infrastructure."

Key opinion leaders present at the discussion also included the likes of Shams Mahmud, Director, BGMEA; Shasha Denims, Managing Director, BGMEA; Syed Mohammad Kamal, Country Manager, Mastercard Bangladesh; Apurbo Kanti Das, Former Member, NBR; Debabrata Roy Chowdhury, Director – Legal, RSA & Corporate Affairs, Nestle Bangladesh Ltd. Snehasish Barua, Managing Partner, Snehasish Mahmud and Company; Amrita Islam, Deputy Managing Director, Picard Bangladesh Ltd; Waqar Chowdhury, Vice President, Association of Asset Management Companies & Mutual Funds; Sajjadur Rahman, Deputy Editor, The Business Standard; and Zakir Hossain, Associate Editor, Daily Samakal.

Staff Correspondent, Barta24.xom

Dhaka: TCB products including rice will be sold at subsidized prices to one crore family card holder low-income families nationwide from Tuesday (May 7).

This information was disclosed in a press release of the government agency Trading Corporation of Bangladesh (TCB) on Monday (May 6).

It is said that the program will be inaugurated by State Minister for Commerce Ahsanul Islam Titu at Ward No. 18 of North City Corporation next to Baridhara Park at 9:30 am on Tuesday.

Products will be sold at subsidized prices among one crore low-income beneficiary families. Distributors will conduct the sales activities of TCB products as per the scheduled date and time with the cooperation of City Corporation and District-Upazila Administration.

At this time, family card holders can buy products from distributors' shops or designated places in their respective areas.

A cardholder can purchase a maximum of two liters of soybean oil or rice bran oil, five kg of rice and two kg of lentils. In this, the price of soybean oil per liter will be kept at Tk. 100. Rice will be sold at Tk. 30 and lentils at Tk. 60 per kg.

After eight consecutive declines, the price of gold in the country's market has been increased by Tk 1,500. The price of good quality, i.e. hall-marked 22 carat gold stands at Tk 1 lakh 10 thousand 213 per load. The new price will be effective from Sunday (May 5).

Bangladesh Jewelers Association (BAJUS) informed the matter in a press release on Saturday (May 4). It is said that the price of pure gold has increased in the local market, for which the new price of gold has been fixed.

According to the new price, per bhari (11.664 grams) of 22 carat gold will cost 1 lakh 10 thousand 213 taka. Apart from this, the price of gold has been set at 1 lakh 5 thousand 197 taka per 21 carat, 90 thousand 174 taka per 18 carat and 74 thousand 988 taka per traditional method.

Earlier, last May 3 and April 30, April 29, April 28, April 27, April 25, April 24 and April 23, gold prices were reduced eight times. Of this, 1 thousand 878 taka was reduced on May 3. Before that, it was reduced by Tk 420 on April 30, Tk 1,115 on April 29, Tk 315 on April 28, Tk 630 on April 27, Tk 630 on April 25, Tk 2,099 on April 24 and Tk 3,138 on April 23. In this, the price of good quality gold was reduced by 10 thousand 262 taka in eight stages.

India on Saturday lifted the ban on onion export ahead of Lok Sabha election in Maharashtra, a state prominent for its onion production. 

The Director General of Foreign Trade (DGFT) of India fixed the Minimum Export Price (MEP) for onion at $550 per tonne, reports Times of India.

Onion traders and farmers, particularly from Maharashtra, had been urging the government to lift the ban, arguing that it would help farmers receive better prices. However, the government refused to relent, fearing that the export of this essential kitchen item might lead to a surge in domestic prices.

During the ban on onion exports, limited exports were permitted upon requests from several countries, including Bangladesh, Sri Lanka, and the UAE. 

India also announced on Friday that it would exempt 'desi chana' (Bengal gram) from import duty until March 2025, citing indications of a decline in the crop's production. Additionally, India extended the duty exemption on imports of yellow peas for entries made on or before October 31, 2024.

Over the past month, chana prices have risen by more than 10% to around Rs 6,300 per quintal in Delhi, compared to Rs 5,700 last month. Traders noted that India imports Bengal gram from countries such as Australia and Tanzania. The government has been closely monitoring the prices of key food items, particularly during the election season, to ensure that prices remain stable.