FE Report
Beneficiary owners' (BO) account holders must mention their tax identification numbers (TINs) to bring transparency in the capital market, Bangladesh Economic Association (BEA), a forum of local economists, said Saturday at a pre-budget discussion with the media at its city office.
"We want transparency in the capital market and the TIN will help ensure it," said Toufic Ahmed Chowdhury, general secretary of BEA.
However, the BEA opposed the levying of gain tax on individual investors at source.
"We think that the time is not mature enough to impose gain tax. It can be imposed later when the market stabilises," the BEA general secretary told the reporters.
BEA said the rise in the prices of petrol and gas prior to the budget has been hitting the common people hard.
"The fares of bus, trucks and auto rickshaws have increased manifold following the rise in the prices of fuel and gas," the BEA statement reads.
BEA said the inflation should be contained at 5.0 per cent from the present level of more than 10 per cent.
"We think the government's main challenge in the next fiscal will be combating the inflationary pressure ," Mr Toufic said.
He said the central bank has taken some measures to tame the inflationary pressure, adding: "We think some of the measures taken by the central bank are contractionary in nature."
Contractionary monetary policy measures hinder growth of economy, he said adding: "We need measures which will ensure growth and reduce the inflation."
Mr Toufic said: "Only monetary policy cannot contain the rising inflation; it needs the best-suited fiscal policy and market intervention."
BEA said import and distribution of food items by state-owned Trading Corporation of Bangladesh might help stabilise the prices of essentials in the local market.
It said the government borrowing from the banks should be minimised to raise investment in the private sector.
The association suggested continuation of the tax holiday facility for one or two years more to encourage private investments.
It observed that savings rate was much higher than that of investment. It said this disequilibrium leads to investment in the speculative market like real estate, secondary stock market and in gold.
"We want the government to announce incentives in the budget so that savings are invested in productive sectors," Mr Toufic added.
The BEA said the government should immediately take strict measures to reform the capital market according to the recommendations made by the probe committee.
"We think there is need for effective coordination between the capital market and the money market," Mr Toufic added.
BEA also said Bangladesh Bank should be fully independent to bring financial discipline in the banking sector.
Beneficiary owners' (BO) account holders must mention their tax identification numbers (TINs) to bring transparency in the capital market, Bangladesh Economic Association (BEA), a forum of local economists, said Saturday at a pre-budget discussion with the media at its city office.
"We want transparency in the capital market and the TIN will help ensure it," said Toufic Ahmed Chowdhury, general secretary of BEA.
However, the BEA opposed the levying of gain tax on individual investors at source.
"We think that the time is not mature enough to impose gain tax. It can be imposed later when the market stabilises," the BEA general secretary told the reporters.
BEA said the rise in the prices of petrol and gas prior to the budget has been hitting the common people hard.
"The fares of bus, trucks and auto rickshaws have increased manifold following the rise in the prices of fuel and gas," the BEA statement reads.
BEA said the inflation should be contained at 5.0 per cent from the present level of more than 10 per cent.
"We think the government's main challenge in the next fiscal will be combating the inflationary pressure ," Mr Toufic said.
He said the central bank has taken some measures to tame the inflationary pressure, adding: "We think some of the measures taken by the central bank are contractionary in nature."
Contractionary monetary policy measures hinder growth of economy, he said adding: "We need measures which will ensure growth and reduce the inflation."
Mr Toufic said: "Only monetary policy cannot contain the rising inflation; it needs the best-suited fiscal policy and market intervention."
BEA said import and distribution of food items by state-owned Trading Corporation of Bangladesh might help stabilise the prices of essentials in the local market.
It said the government borrowing from the banks should be minimised to raise investment in the private sector.
The association suggested continuation of the tax holiday facility for one or two years more to encourage private investments.
It observed that savings rate was much higher than that of investment. It said this disequilibrium leads to investment in the speculative market like real estate, secondary stock market and in gold.
"We want the government to announce incentives in the budget so that savings are invested in productive sectors," Mr Toufic added.
The BEA said the government should immediately take strict measures to reform the capital market according to the recommendations made by the probe committee.
"We think there is need for effective coordination between the capital market and the money market," Mr Toufic added.
BEA also said Bangladesh Bank should be fully independent to bring financial discipline in the banking sector.
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