Budget analysis

These relate to new fiscal proposals about SIM Cards, mobile phone sets, and imported furniture and poultry industry. One finds that SIM cards are used by three mobile operators and only one service provider uses a different technology which does not require use the of SIM cards. Is the new fiscal proposal relating to SIM cards purported to suit the interest of the particular mobile operator?

Has the duty on imported furniture been raised to promote the interest of a particular business house? And, is the new fiscal proposal concerning poultry industry aimed at serving the interest of some particular person?

Furthermore it is intriguing to observe the use of Sonar Bangla in the concluding paragraph of the Finance Minister's speech. We know Sonar Bangla is the political theme of Bangabandhu Sheikh Mujibur Rahman and his party. Has the Finance Minister embraced the philosophy of "Sonar Bangla"?

Our finance minister, in his budget speech for the fiscal 2005-06, has proposed to extend the time limit for whitening the black money for another year. It is completely contrary to his earlier stand against black money. In various pre-budget meetings, the finance minister announced, "we can't allow legalisation of haram (illegal) money every year." It might have been done only for the sake of revenue collection. But I think this can be done only for the specific period of time as it has been done in India. What amazes me is, the honest people are paying income tax at the rate of 10% while the owner of the ill-gotten money will have to pay tax only at 7.5%. This is quite ridiculous. It has been done for the last three years and only Tk. 1,800 crore (out of Tk. 70,000) has been 'whitened' so far. This proves that the black money holders are not willing to whiten their money in that fashion, because they are passing their time easily without showing their black money. So, why the black-marketer will pay extra amount! This kind of policy loses the trustworthiness, demoralises the honest taxpayer. This type of policy encourages the evildoers, makes the disparity and weakens the economy. Finally it can be said that, it is total injustice to the honest taxpayer. Hope our respected and learned Finance Minister will rethink about it.

Md. Shahed-ur-Rasul Narayanganj-1400

M. Saifur Rahman presented the national budget for FY 2005-06 in the House on June 9. As I am not a student of economics, most of the budgetary parlance is a little bit esoteric for me. But by reading the text of the budget I tried to understand the pros and cons of the proposed budget. Typically a national budget is always debatable. The ruling party terms the budget as pro-people and the opposition as anti-people. But we, the general people of the country need to scrutinise the budget thoroughly.

Mr Rahman doubled the farm subsidy to boost the agricultural outputs and alleviate poverty. But the farmers, the lifeblood of the country should be benefited in real sense. He allocated Tk 24500 crore for ADP. It is not colossal for a huge population. But it should be materialised for the welfare of the mass , not to satisfy the political ranks and files or to woo the voters.

The revenue target of Tk 45722 crore may be ambitious but it is not highly impossible. It can be collected through good governance. For this NBR should be rejuvenated to reach the optimum target. Tax ombudsman should be appointed shortly. Perpetuation of tax holiday for 18 sectors is essential for industrialisation and economic growth. But the provision to whiten the black money is really controversial. It will bolster corruption and weaken the good governance mechanism in our country. If the black money holders can legalise their ill-gotten money by giving 7.5% levy, the gap between the rich and the poor will be widened and scams in public and corporate sectors will be increased. It may influence the next general election. So this provision must be jettisoned from the proposed budget. I hope the finance minister will address the issue seriously to ward off further hullabaloo. But the main opposition party Awami League has boycotted the current budget session. So they have no right to lambaste the ruling party outside the parliament. I hope they will return to the parliament if they want to address the concern of the people.

Molla Mohammad Shaheen Dept of English, DU

The national budget of Bangladesh has just been presented in the Parliament with a lot of aplomb and rhetoric. Our finance minister has termed it a people friendly budget. Some quarters have also called it a budget for raising the party's number of votes. Be it as it may, I would only focus on one of the components of the budget, which affected me, and like me, a number of people, perhaps a very large number of people. I refer to the wanton imposition of an exorbitant tax on the SIM cards of the mobile phones. I come from a remote village of Bangladesh and work in Dhaka. Back home I have my old and widowed mother who lives alone. A maid looks after her. I some how managed to buy her a hand set which our acquaintances in the village get recharged for a paltry some of taka 300 as and when required. This phone was needed for me to enquire about her well being from time to time, or for her to get to me when she needed me. From now on it is going to be painfully impossible. I will not be able to replenish her hand set with a new card at the price that our finance minister has imposed on us. After imposition of the 1200 taka tax it is not going to be possible for me to let my mother use a mobile phone at all. I would not easily know when she needs me or my help in case of illness or otherwise. This is painful to say the least.

Mobile phones are not a luxury for the vast multitude of people in Bangladesh. They have an inherent right to communicate. As Professor Yunus had said while launching Grameen phone, he had the vision of empowering the people, especially the women in the villages of Bangladesh. Please consider this vision in its correct and practical perspective. In the absence of a regular telephone network, mobile phones are a necessity. All we heard from the Minister, the other bosses in the finance department or the service providers is about mobile phone as a matter of business. Not as a matter of dire necessity, it is said that the service providers are making wrong kind of money and therefore they have to be brought to book. Honourable Minister, please do control them, by all means, if they are indulging in unruly business or are making undue profit. There are a number of ways to do that. Ask them to reduce call charges. Ask them to be transparent in their business if they are not. But please do not disempower the people of Bangladesh. Do not take our right to communicate away.

Khaleda Binte Azim On e-mail