Reining in prices of essentials is a big challenge: CPD

Center for Policy Dialogue (CPD) thinks reining in the soaring prices of essentials should be given priority in the next budget as it is one of the major challenges ahead for the government.

The CPD also thinks that the prices of essentials may decrease a bit if related customs-taxes are slashed. They suggested OMS programme should be extended and monetary assistance for the poor section of the people should be increased.

The independent think-tank came up with these recommendations for the next budget at a press conference in its headquarters in Dhanmondi on Tuesday.

CPD said the controlling inflation should be prioritised in the next budget.

Executive director Fahmida Khatun questioned the authenticity of the data on the inflation and said there should be accurate data on inflation.

She also urged the government to increase monitoring of the market while recommended the government continues subsidies in fertilizer, agriculture and remittance.

CPD’s fellow Mustafizur Rahman said people would be happy if actions were taken against tax dodgers and loan defaulters ahead of national election. But, in reality, no actions are usually taken against these criminals rather the government gives chance to whiten black money ahead of election and gives leeway for the loan defaulters.

He urged the government not to take any unnecessary projects to slash the expenditure in Annual Development Plan (ADP).

CPD thinks that alongside taking short-term plans, some long-term should be taken in every year’s budget.

Bangladesh should take preparation as some big challenges lie ahead such as LDC graduation in 2026, achieving SDG in 2030, becoming higher-mid income country in 2031 and higher income country in 2041.

The CPD’s recommendations for the government include stopping the chance to whiten black money, increasing the tax-free income threshold to Tk 350,000, increasing tariff on cigarette and other tobacco products, adjusting corporate tax.

The issue of ongoing crisis in Sri Lanka has also been discussed during the press briefing.

Mustafizur said, "The situation in Bangladesh is not comparable with that of Sri Lanka but we must remain wary and take lesson from them."

"Sri Lanka failed to complete their mega projects and our mega projects should be completed with integrity on time," he added.

CPD’s research director Khondaker Golam Moazzem and researcher Toufiqul Islam Khan also spoke at the press briefing.