Finance Minister Amir Khosru Mahmud Chowdhury today said the government has undertaken an all-out reform programme to establish a welfare-oriented state and a humane economy for the country’s common people by moving away from an oligarchic and patronage-based economic system.
“The democratization of the economy is not merely a slogan; it is the core philosophy of the present government,” he said while addressing a roundtable discussion titled “Budget in Times of Crisis and Public Expectations” organised by the Bengali daily Prothom Alo held at a hotel in the capital today.
The finance minister said the government is placing special emphasis on bringing marginalised communities, including blacksmiths, potters and handloom workers who remained outside the budgetary framework for decades, into the mainstream economy.
He said special projects and funds would be allocated in the upcoming budget to promote and monetize the creative economy, including theatre, culture, music, painting and artificial jewellery industries, said a Finance Ministry press release.
The minister said “Theatre Districts” would be established not only in Dhaka but also in major cities across the country. He added that Bangladesh’s culture, films and music would be branded and promoted in the global market to enhance the country’s soft power, following the examples of neighbouring countries.
Amir Khosru said the government is taking stringent measures to reduce the cost of doing business, excessive charges at ports and different stages of transportation, as well as bureaucratic harassment.
He said the number of permissions and approvals required for businesses and project implementation would be reduced to only 13, while the entire economic and administrative system would be brought under digital automation within the next one year.
The minister said initiatives are underway to ensure all citizen services through a “One Citizen, One Card” system.
He also said projects would be monitored daily from inception to completion and implementation within a specific timeframe would be made mandatory.
Highlighting financial sector reforms, the finance minister said the government is strengthening the capital market and bond market as alternatives to high-interest bank loans.
He said the government has already received a strong response from international investment bankers, fund managers and the International Finance Corporation (IFC).
According to the minister, companies with capital above a certain threshold would be made mandatory to enlist in the capital market.
He added that the government is also working on floating “Bangladesh Bonds” both at home and abroad with interest rates ranging from 6 to 9 percent.
On tax reforms, Amir Khosru said the government would verify the actual market shares of multinational beverage and large tobacco companies, including Coca-Cola and Pepsi, to ensure fair tax collection and prevent tax evasion.
He said a simplified annual flat-rate tax system is being planned for small restaurants and shop owners to bring them under the tax net and protect them from harassment by tax officials.
The finance minister said a fundamental transformation is being brought to tax policy formulation through a new bill, under which a policy-making body comprising experts with knowledge of the global economy, local trade and human profitability would be formed instead of relying solely on tax collectors.
Calling upon the country’s people to remain patient for the next two years, the minister said the government’s objective is not only to increase GDP growth, but also to ensure that the benefits of growth reach ordinary citizens.
He said Prime Minister Tarique Rahman has strong political commitment and the government is working round the clock to complete all deregulation measures within the next six months.
“Bangladesh will emerge as a truly welfare-oriented state within the next two years,” he added.
The discussion, moderated by journalist Shawkat Hossain, was attended, among others, by PPRC Chairman Dr Hossain Zillur Rahman, CPD Distinguished Fellow Dr Debapriya Bhattacharya, BIGD Professorial Fellow Dr Selim Jahan, Transcom Group CEO Simin Rahman, HSBC Bangladesh Managing Director Mahbub ur Rahman, Policy Exchange Chairman Dr Masrur Reaz, TK Group Director Mohammad Mostafa Haydar, BKMEA President Mohammad Hatem, Moulvibazar Traders Association General Secretary Golam Mowla and Bangladesh Restaurant Owners Association Secretary General Imran Hasan.
