THE World Bank has asked the government to carry out sweeping reforms in current trade and investment regimes as major conditions for the planned budget support programme of the international lending agency. The WB also highlighted specific areas such as tax system, public financial management, bank and financial sector, energy and power, transport sector, special economic zones, readymade garments and welfare of migrant workers for bringing them under dictated reforms to become eligible for its planned budgetary support, expected to be US$ 500 million, reported the press quoting sources at the Finance Ministry.
Finance Minister AMA Muhith told Bangladeshi journalists that the WB appeared positive to extend budget support for next financial year.
The Bank asked the government to merge Para-tariffs with import tariffs and reduce dispersion, reduce overall nominal protection rates, close tax loopholes, reduce delays for duty-drawback refunds to two months, review existing fiscal incentives with the objective of adopting more coherent, transparent, predictable, and time-bound policies and formulate and adopt a strategy for services trade.
Besides, the Bank pointed out that a revision on the current mandatory standards with a view to introduce more flexible standards in compliance with international best practice to help eliminate unnecessary trade restrictive quality standards is of paramount importance.
The multilateral lending agency in its policy notes said transparent and clear laws on investment should be in place to promote foreign direct investment in the country.
It should be apparent to anyone that FDI inflows would not occur if a country was suspected of having dodgy investment laws, non-existent policies to repatriate profits, or a shady regime which indulges in corrupt and other dodgy practices or does nothing to combat crime. The authorities should ease regulatory barriers to ensure that only the most necessary ones exist to promote FDI inflows.
Our total system is encouraging corruption making it impossible to bear the burden. There are no loopholes for the opportunity to harass people. Our tax system is irrational. The people have the grievance that the government’s only consideration is how to extort money from the people. The Finance Minister is either keen to keep his job or out of touch with the realities.
