The New Nation - Internet Edition

Staff Reporter

Finance and Planning Adviser A B Mirza Azizul Islam yesterday identified the higher profiteering tendency of businessmen as a major cause behind the recent unprecedented price hike of rice.

Speaking to reporters after the launch of the Citizen's Charter at the National Board of Revenue, he said there are several reasons for the price hike of rice this year adding, "Natural initial effort of businessmen is to maximise profit. Perhaps they went through that path."

The Adviser, however, was optimistic to say that the price will come down shortly in the retail market also, as the price have already started to decrease in the wholesale market due to multiple initiatives undertaken by the government. Businessmen may have anticipated that after twin floods and the onslaught of Cyclone, there will be shortage of rice and so price will go up. The sudden rise in rice prices on the international market exacerbated their anticipation, he said.

"With all these things coming together, rice traders took advantage of the situation to increase their profit margins hugely."

However current imports of rice are plentiful, the Adviser said, and with the decrease in the wholesale price he hoped to see the same change in the retail markets.

Replying to a question, Azizul said the country's economy is going through a tough phase now and the Government is trying its best both domestically and internationally to overcome it. "In order to combat this, the Government is making efforts to increase the mobilisation of national resources as well as arrange for more international financial aid."

He went on to say that the rise or fall in prices of any product depends on supply and demand. "In case the supply cannot meet the demand, it is obvious that there will be a rise in the price."

However, the Finance Adviser said he found it sad that there has been a price hike despite an ample supply of rice in the market.

Responding to another question Dr Aziz said the main focus of the government in freezing the questionable accounts of individuals and not their business accounts.

Azizul also mentioned that national revenue collection is presently going well. In the first five months (July-November) of the current fiscal year, revenue has already exceeded that of the same period a year ago by 24 percent, the adviser said.

"Due to the change in the country's law and order situation, the citizens are now more aware and interested in paying their taxes," he said.

"Whether this is due to their own sense of responsibility or their apprehension of the consequences, it has been made clear to all taxpayers that there are no alternatives to paying taxes."

Earlier, addressing the NBR function Dr Aziz asked the officials to implement tax related laws without discrimination. Otherwise, it will give rise to corruption.

"You are to implement all laws and rules uniformly to avoid any sort of corruption," he said.

The Finance Adviser directed the NBR officials to act in a manner that will foster business and trade friendly. "Otherwise, it will obstacle overall macro-economic position of the country," he said.

Describing corruption by a section of NBR officials as a major obstacle for investment and employment, Dr Aziz said this would not bring anything good for the country.