United News of Bangladesh

Finance Minister Amir Khosru Mahmud Chowdhury on Thursday said the government has undertaken an all-out reform programme to establish a welfare state by moving away from an ‘oligarchic and patronage-driven’ economic system. The minister said democratization of the economy is not merely a slogan but the core philosophy of the present government, he said while addressing a roundtable discussion titled “Budget in Times of Crisis and Public Expectations” at a hotel in Dhaka. He said special emphasis is being placed on bringing marginalised groups including rural blacksmiths, potters and weavers into the mainstream economy after they remained outside the budgetary framework for decades. The finance minister said the upcoming national budget would include special projects and fund allocations to promote and monetise the creative economy, including theatre, culture, music, painting and artificial jewellery. He also announced plans to establish “theatre districts” in major cities beyond Dhaka and said Bangladesh’s culture, films and music would be branded and promoted globally to strengthen the country’s soft power, following examples set by neighbouring countries. Amir Khosru said the government is taking strict measures to reduce the cost of doing business, including excessive charges and bureaucratic harassment at ports and across the supply chain. He said the number of approvals required for business operations and project implementation would be reduced to 13, down from what he described as an excessively complicated system. The minister added that the entire economic and administrative system would be brought under digital automation within the next year, while initiatives are underway to introduce a “One Citizen, One Card” system for all public services. Highlighting plans for financial sector reforms, the finance minister said the government is strengthening the capital and bond markets as alternatives to high-interest bank loans. He said international investment bankers, fund managers and the International Finance Corporation (IFC) have shown strong interest in the initiative. On taxation, Amir Khosru said the government would verify the actual market share of multinational and major tobacco companies, including The Coca-Cola Company and PepsiCo, to ensure fair tax collection and prevent tax evasion. He said plans are also underway to introduce a simplified flat-rate tax system for small restaurants and shop owners to bring them under the tax net and reduce harassment by tax officials. The finance minister said sweeping changes are being introduced in tax policymaking through a proposed bill that would establish a policy-making body comprising individuals with expertise in the global economy, local trade and human profitability, rather than focusing solely on tax collection. Urging people to remain patient for the next two years, he said the government’s goal is not only to increase GDP growth but also to ensure that the benefits of growth improve the lives of ordinary citizens.