Import of luxury goods will be held in check until the price-fuelling global inflation cools down to tolerable levels, says Finance Minister AHM Mustafa Kamal about one of the curbs coming in the next budget.
The minister, thus, corroborates Bangladesh Bank's recent import-restrictive policy in the wake of financial bust in a number of countries and economists' call for caution on part of Bangladesh.
"Inflation is high across the globe. So, we resort to import goods at higher prices. Yet, there are no restrictions on the import of necessary consumer goods, capital machinery and industrial raw materials," he said Wednesday at a press briefing.
After meetings of the Cabinet Committee on Public Purchase and the Cabinet Committee on Economic Affairs on the day, the minister told journalists that the government would place the national budget for the next fiscal year (FY) 2022-23 in parliament on June 9.
Backing the import regulation, Mr Kamal made it clear that imports were never unregulated. "Necessary measures are taken to control imports regularly. We are doing the same things now."
He notes that Bangladesh Bank has taken initiative to check the import of luxury items and increased the LC margins. This will stay in place until commodity prices come down on the international market.
"Imports in our country were always higher than the exports. Both the imports and exports are rising year on year. But the export never overtakes the import in Bangladesh," the finance minister told reporters, apparently in relation to balance-of-payments situation and resultant current-account deficit.
He said when the macroeconomic situation both at home and abroad would get normalized the government would open the import of luxuries, like in previous days.
Asked about the individual tax-free income limit in the next budget, Mr Kamal said no decision was yet taken.
"We have to consult more with the stakeholders about certain items in the budget before finalizing it," the minister said.
Currently, Bangladesh's individual income-tax ceiling is Tk0.30 million. Economists plead for raising the limit in view of rising cost of living amid price rises.
Mr Kamal said: "We are framing the next fiscal budget keeping in mind the situation of the general people. We would not prepare such budget as pushes up pressure on the people."
The National Board of Revenue (NBR) will take a decision in consultation with the institutions concerned, he adds.
The finance minister-headed Cabinet Committee on Economic Affairs approved one proposal and the public purchase committee 11 proposals at their meetings.
In its meeting, the economic committee endorsed direct-procurement method for purchasing 'Firstline TB Drugs' from the Global Drugs Facility for providing health services to the stranded Rohingya community in Cox's Bazar district.
The purchase committee approved 11 procurement proposals involving an aggregate cost of Tk 56.26 billion.
It endorsed purchase of 50,000 tonnes of wheat from Bagadiya Brothers' Pvt Ltd, India, at a cost of Tk 1.72 billion, import of 15,000 tonnes of rock sulphur from M/s Desh Trading Corporation at Tk 957.3 million, and purchase of 0.10 million tonnes of high-sulphur furnace oil from PT. Bumi Siak Pusaku Zapin, Indonesia, at Tk 5.88 billion.
The committee also approved procurement of necessary goods, works and services from China Railway International Group Co. Ltd for establishing digital connectivity at Tk 39.75 billion, hire of joint-venture consulting firm AARVEE Associates Architects Engineers & Consultants Pvt. Ltd, India, STUP Consultant Pvt. Ltd, India, and Development Design Consultants Ltd, Bangladesh, at Tk 758.46 million for a dual-gauge rail-track work on Parbatipur-Kaunia route and for Khulna-Darshana section dual-track installation works at Tk 873.73 million.
It also approved appointment of a contractor -- M/s Chowdury Enterprise -- at Tk 1.07 billion for installing a 606-metre bridge on Brahmaputra River in Jamalpur, and contractor M/s Construction & Co. Ltd at Tk 1.77 billion for constructing 1.0km bridge in Kishoreganj on the Meghna River,
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