Staff Correspondent:

Former State Minister for Planning and Agriculturist Shamsul Alam on Thursday said that 7 to 8 billion dollars or Tk 81 to 92 thousand crore takas are smuggled annually. The dollar crisis started from money laundering. Hence steps are urgently needed to prevent it.

He said these at a discussion meeting titled ‘Economy of Bangladesh in Global Context: Growth, Inflation, Food and Nutrition’ at the Bangladesh Agricultural Research Council (BARC) auditorium in the capital’s Farmgate on Thursday (June 20).

This former State Minister for Planning said that 22 percent of loans are “risky”, as a result, the cost of the bank is increasing. This rush must be curbed. It is better if the bank commission, or at least a strong committee should be made with expert economists.

“ADP is supposed to be 3 lakh 78 thousand crores takas in 8th five-year plan, but it has been 2 lakh 65 thousand crore takas,” he said. Proposals in the budget like raising tax rates on the rich and withdrawing tax-free benefits on car imports for MPs are “bold moves”.

The former State Minister for Planning believes that reducing the tax at source by 1 percent at the supply level of consumer goods will help reduce inflation.

“The prices of some products are reducing. The prices did not increase after the budget. Expatriate income increased by 2 billion in the 11 months till May. The exchange rate of foreign currency is stabilizing. Foreign currency deposits are expected to come through offshore banks at 8.5% interest,” he said.

Shamsul Alam said that the Government has reduced the budget this time to reduce inflation. The deficit has also been reduced, which has been done in the interest of cost reduction. Therefore, it is a bold budget. The corporate tax rate has been reduced in the budget. Various initiatives have been taken to increase production. Initiatives have been taken to import advanced technology or machinery in agriculture. The positive aspect of the budget in the macro economy is that initiatives have been taken to increase revenue.

Advising the Finance Minister to emphasize tax collection, Shamsul Alam said, “Use NBR only for tax collection. But we have to think about how to reduce the debt. The outcome of the bank merger initiative is uncertain.”

Apart from Finance Minister Abul Hassan Mahmood Ali, State Minister for Commerce Ahsanul Haque Titu, various senior officials of the government were present on the occasion.