Published :
Updated :
For all latest news, follow The Financial Express Google News channel.
Two tranches of funds from the IMF lending package to Bangladesh are now expected together in June, after further delays in release of one amid dilemmas, the finance adviser indicates.
Dr Salehuddin Ahmed looks to deferred placement of amalgamated fund-release proposals before the International Monetary Fund (IMF) board, now expected in the last month of the current financial year.
He told journalists Monday that the fourth and fifth tranches of the IMF loan might come together in June instead of March as told in the past.
"The proposals for fourth and fifth tranches will be placed before the IMF's board in June," he said in reply to a query.
The finance adviser of the post-uprising interim government was briefing newsmen after a session on finance ministry-related issues at deputy commissioners' conference at the Osmani Memorial Auditorium in Dhaka.
In its previous schedule, the fourth instalment amounting to $645 million was expected to come by February 10 following a board meeting on February 5 by concluding the third review of the package deals laden with reform conditions.
However, the meeting has already been deferred until mid-March, and the finance adviser Monday made it clear that the issue of fourth instalment would not be placed before the Fund board then.
Under the fifth tranche Bangladesh is expected to receive around $530 million from the US$4.7 billion worth of lending programme the IMF extended when the country's foreign-exchange reserves were falling fast.
Mr Ahmed feels the country's macroeconomic situation is now quite good. "Our current account, financial account, and foreign remittance are in good shape. We are not becoming restless to get the instalments."
He notes that getting foreign loans is not an easy task, and "we don't bring money by begging".
"We need to meet many conditions to get foreign loans and we do so in our own interest."
However, he said, the government wouldn't go by all the conditions prescribed by the IMF to get loans.
Regarding his discussions with the deputy commissioners, the finance adviser said at the village or upazila level there are many businesspeople who earn a lot but do not want to pay taxes. "That is a matter of concern for us. The tax net needs to be expanded."
He said doctors and many other professionals often make cash transactions and even do not give receipts thereof. Thus, these transactions remain out of accounts and the purview of tax.
The deputy commissioners suggested making the transactions through digital medium having records, said the adviser.
Regarding the ways of widening tax net further, the adviser said the NBR may launch special drives in the respective areas while the DCs help in identifying the tax-dodgers in their areas.
Dr Ahmed said the government would try to cast wider the tax net through not increasing the rate but keeping it at a tolerable level in the upcoming budget.
He said there are around 5.0 million industrial units but only 0.5 million of them pay tax.
The government will now consider lowering indirect taxes and try to generate more direct taxes, he notes.