Finance Minister AMA Muhith speaks at a consultative committee meeting on the national budget 2012-13 at a hotel in Dhaka Thursday.

Finance Minister AMA Muhith on Thursday said the government would continue to allow investment of black money in the stock market throughout the next fiscal.

“There is a provision in the Income Tax Act which allows legalising black money. We are working to make the provision more effective,” Muhith said.

He also said the government would provide incentives to four sectors including skilled labour, maize cultivation, seed production and poultry industry considering their prospects.

The minister was addressing a consultative committee meeting on the national budget 2012-13, jointly organised by the National Board of Revenue (NBR) and Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) at a hotel in the city.

“The existing facilities for the stock market investors will remain the same. Some reformations in the stock market including demutualisation will also be initiated,” Muhith said.

FBCCI President AK Azad earlier opposed the opportunity to legalise black money by paying 10 percent tax. “It will discourage the regular tax payers. If the government decides to allow whitening black money, higher monetary fines should be realised in this process. Otherwise, it will cast negative impact on revenue earning,” AK Azad said.

FBCCI placed a 448-point proposal including 194 points on import tax affairs, 107 on Value Added Tax (VAT) and 147 on income tax affairs for the upcoming national budget at the meeting. While addressing the meeting, the finance minister said though the government intends to promote local industry, it would also keep an eye on imports since the country is unable to fulfill the demands for many goods by its own.

“We are working to create a balanced environment for both the manufacturers and importers by imposing taxes on production, assembling and final products,” Muhith pointed out. He said the government would set a target to lower the inflation to 7.5 percent in the next fiscal from existing 9 percent.

Muhith said they expect the economic growth to be 7.2 percent in the upcoming fiscal, which is 6.7 percent in the current fiscal.

“I think our expectation is not so high considering our growth in the last few years,” he added.

The finance minister expressed his firm hope to start construction of the Padma Bridge within the next fiscal year.

“There is no doubt that the construction of the bridge will be started within the next fiscal. Nothing to worry about financing,” Muhith said. He said the pre-shipment inspection (PSI) system for imported goods will be abolished within the next seven months to make customs activities more convenient for the businessmen. Muhith, however, said the some products would still be scanned under the PSI system.

NBR chairman Dr Nasir Uddin Ahmed presided over the meeting, which was also attended by lawmaker Golam Dastagir Gazi, FBCCI senior vice president Md Jasim Uddin, vice president Mostafa Azad Chowdhury Babu, former president Md Akram Hossain, former senior vice president Abul Kashem, Dhaka Chamber of Commerce and Industries (DCCI) President Asif Ibrahim, BGMEA President Shafiul Islam Mahiuddin and Exporters Association of Bangladesh President Salam Murshedi.

The Daily Sun/ Bangladesh/ 18th May 2012