The New Nation - Internet Edition

ICT, telecom, communication receive Tk 6,334cr allocation: Steps to build link roads connecting Tejgaon and Rokeya Sarani

Staff Reporter

Finance Adviser Mirza Azizul Islam yesterday proposed an allocation of Tk 6,334 crore, which is 6.6 percent of the announced budget, for information and communication technology (ICT), telecommunication and communication sectors.

In his budget speech, the Adviser proposed an allocation of Tk 100 crore to IT Equity and Entrepreneurship Fund to enhance investment in information and communication technology (ICT) sector. Relevant agencies, including Bangladesh Computer Council will be involved in the process of channeling this fund.

He said ICT is the country's thrust sector. Taking into account this priority, the government is formulating national e-governance strategy supported by a national ICT roadmap.

The Finance Adviser said the first phase of infrastructural work of a 231 acre hi-tech park at Kaliakoir near Dhaka will be completed by the end of this year. Efforts are underway to attract the private and foreign investors to make investment in this IT-park.

The Adviser said the government has also taken a number of bold steps in the area of information and broadcasting. A set of guidelines has been prepared to introduce community radio broadcasting system.

He said there is 0.7 km road for each square km of land area in Bangladesh. "We should now concentrate on widening the roads and enhancing their quality," he said.

The Adviser said a specific programme has been undertaken in the communication sector to enhance the efficiency and capacity of the Department of Roads and Highways alongside the development of road infrastructure. Besides, the Padma Bridge construction project has been approved at a cost of Tk 10,162 crore. Currently the design phase is underway for a quick start for the construction of this 5.58 km long bridge.

Referring to the Bangladesh Railway, the Adviser said a broad based reform initiative is in place to turn the Bangladesh Railway from a losing entity into a profitable one. A new railway track on the Dhaka-Chittagong route is being laid to reduce the travel time by two hours between the capital and the port city. This will undoubtedly have a far reaching positive impact on the country's trade and commerce. As part of its ongoing reforms, Bangladesh Railway will be corporatised.

Dr Islam said implementation of a strategic action plan is underway to build a cost-effective, sustainable and safer public transport system in Dhaka city. To reduce traffic congestion in Dhaka city, steps have been taken to construct link roads connecting Bijoy Sarani to Tejgaon Industrial Area, and Airport Road to Rokeya Sarani. Initiatives for protection of Hatirjheel and Begunbari Canals have also been taken up in earnest.

Japan to provide Tk 63 cr grant for cyclone shelters

BSS, Dhaka

Japan will provide Yen 958 million equivalent to Taka 63.13 crore as grant aid for the construction of multipurpose cyclone shelters in the cyclone Sidr-affected areas during 2008-2010.

An Exchange of Notes to this effect was signed between the governments of Bangladesh and Japan here on Monday, said a press release.

Md. Aminul Islam Bhuyian, Secretary, Economic Relations Division, and Masayuki Inoue, Ambassador of Japan to Bangladesh, signed the Exchange of Notes on behalf of their respective governments.

The construction of multipurpose cyclone shelters in the Sidr-hit areas is being implemented by the Local Government Engineering Department (LGED) of the Local Government Division.

The amount would be utilised for the construction of 38 cyclone shelters cum-primary schools in four districts-Pirojpur, Patuakhali, Bagerhat and Barguna.

The project is aimed to provide safe shelter for the people and their resources including domestic animals during natural calamities like super cyclone (Sidr) and tidal surge, the release said.

Upazila poll schedule demanded

Staff Reporter

Leaders of the Bangladesh Upazila Chairman Samity demanded of the Caretaker Government to declare the Upazila Council Election schedule before the national election.

They made this demand at a press conference at the National Press Club in the city yesterday.

Convener of the Samity Azizul Haque Lebu Kazi, Joint Convener Afzal Hossain Kawsar, Member Secretaries Firoz Kabir, Maj (Retd) Jasim Uddin, Shamsul Karim and Ziaul Haque Sarker addressed the conference.

They expressed doubt over holding the upazila election after the general election, noting that earlier the major political parties promised in the election manifesto to hold the upazila election, but none of them kept their commitment. They said the upazila system was introduced for the welfare of the rural people, but, as soon the rural people were getting benefit from the system due to huge development of infrastructure, the then BNP government abolished it in 1991.

Azizul Haque said they welcomed the caretaker government's initiative to strengthen the local government. "Now we strongly demand holding of the upazila election before the national election," he stressed.

He said they also demanded handing over the power to the elected representatives of the people by holding the national election in accordance with the roadmap.

Ziaul Haque Sarker said the previous democratic governments did not give due importance the local governments and made the upazila system inactive ignoring the High Court order by not holding the upazila election.

Female, aged persons to get extra facility

UNB, Dhaka

The caretaker government refused to entertain the plea for a change in the budget raising the income-tax slab for the next fiscal year (2008-09) to match with the inflationary pressures.

"The existing limit for tax-free income, tax rates, income slabs for individuals shall remain unchanged for the upcoming fiscal year," Finance Adviser Dr Mirza Azizul Islam said in his budget speech yesterday.

But, for female taxpayers and senior taxpayers of ages exceeding 70, he proposed to raise the limit for tax-free income to Tk 165,000. For others, the ceiling continues to be Tk 150,000. "It may be mentioned that the limit for tax-free income was considerably raised in the last fiscal year," the Finance Adviser said to support his position on not making any change in the income-tax ceiling and rate.

He, however, reduced the tax rate for listed and non-listed companies. He proposed to revise the tax rate for companies listed for public trading from 30 percent to 27.5 percent, for companies not listed for public trading to 37.5 percent from 40 percent.

"The 45 percent rate for banks, insurance, financial institutions and mobile-phone operators will, however, remain unchanged."

For corporate taxpayers, Dr Aziz proposed to impose income tax on dividend income in accordance with the applicable scheduled rates for companies instead of the existing 15 percent.

Currently, according to Section 16CC of the Income Tax Ordinance, all companies, irrespective of profit or loss, have to pay a minimum tax on the basis of their turnover, which is clearly in breach of the fundamental principles of Income Tax.

"I propose to rescind this Section."

Tk 1,219 cr siphoned money recovered

BSS, Dhaka

The government has repatriated about Taka 1,219 crore from its anti-corruption drive, said adviser for Finance and Planning Dr AB Mirza Azizul Islam in his budget speech on Monday. He said the amount has been deposited to the government exchequer. Mentioning the promulgation of the Money Laundering Prevention Ordinance, 2008 to prevent transfer of illegal money, the adviser said the Anti-Terrorism Ordinance, 2008 also obtained approval of the government.

The initiatives would contribute towards facilitating international co-operation in recovering the money illegally transferred to foreign countries, he said.

The adviser said a national level committee headed by the law adviser and an inter-agency task force headed by the governor of Bangladesh Bank have been working to retrieve the illegally transferred money abroad.

Extortion case filed against Nazmul Huda

Court Correspondent

Verdict of the extortion case filed against detained Barrister Nazmul Huda and his wife Advocate Sigma Huda will be pronounced on June 12.

The argument of the case was completed yesterday when Md Abu Mohsin, Judge, Additional Metropolitan Sessions Judge of Dhaka fixed the date to pronounce the judgement.

The accuseds have allegedly extortioned a 800 CC car from the complainant AM Siraj, former BNP MP elected from Bogra. He filed the case with Dhanmondi Thana of the city on July 29 last year which the accused allegedly extorted on 23 and 27 February of 2003 at their residence of the city.

Charge was framed against the accuseds on February 2 of this year under sections 385 and 386 of the Penal Code. If the 13 witnesses the depositions of 11 were recorded to deliver the judgement.

Additional Public Prosecutor Md Kabir Hossanin conducted the case on behalf of the prosecution.

Mixed reaction: Political parties

Staff Reporter

Leaders of different political parties have expressed mixed reactions to the proposed budget placed by Adviser for Finance Dr AB Mirza Azizul Islam on Monday.

Major political parties termed the budget luxurious and imaginary saying that it neglected the development sectors.

BNP Secretary General Khondoker Delwar Hossain termed the proposed budget illegal saying that the caretaker government has no constitutional rights to place a budget.

"It has no right to impose out-of-parliament tax," he told reporters at his NAM flat residence following the placement of the budget.

He said the BNP did not have any interest in the proposed budget. "I did not even care to look at the budget," he said, and added according to Article 58 (B) and 58 (C) of the constitution the Caretaker Government cannot announce the national budget. The Government has violated the Constitution also according to Article 83, he added.

"We do not want to make any comment on the budget when the entire nation is disappointed," he observed.

Awami League Presidium Member Suranjit Sen Gupta told reporters that an unstable political atmosphere could never offer a stable budget.

"Political stability is the prerequisite to have a sound budget. The Government is isolated from the people. That is why this budget will be failed to meet the people's demand," he said while expressing his instant reaction on the proposed budget.

Suranjit said the democratic government, which would be elected in December, would have to take the challenges to reach the goal of this budget.

Prof Ali Ashraf, Finance Secretary of Awami League told reporters that the budget will intensify the poverty and unemployment problem in the country.

In his instant reaction, he said as per the budget the Government did not heed to the infrustructural development of the country and it will discourage the businessmen to invest.

"Without the additional investment economic development of the country is impossible," he said.

Ali Ashraf said the Government had the intention to press on the responsibilities of implementing the target of the budge to the next elected government, as the tenure of the Caretaker Government would be ended by December. It would be a burden for the next elected government.

"The Caretaker Government failed to implement their promises, which were declared in the previous budget. The promises includes establishment of stable economy, controlling of price hike, ensuring food security, reducing the discrimination between poor and rich and resolving unemployment crisis in the country", he pointed out.

Pro-reformist BNP leader Maj (Retd) Hafiz Uddin Ahmed said it is not possible for a non-elected government to ensure welfare and development of the people.

However, he said the new budget contains both negative and positive aspects.

The BNP leader observed that the next elected government could make the budget bigger if the election was held in December.

Jamaat-e-Islami Secretary General Ali Ahsan Mohammad Mojaheed said it the violation of the Constitution to place the budget by a non-elected government.

The Government has broken the record of anomalies by prolonging its power not holding the elections in time, he observed.

The Jamaat leader referred that it was wise for the Government to handover power to an elected government by holding a free and fair election since 17 months have already passed and said it would be an honour for the Government if the budget could be placed by an elected government.

President of Communist Party of Bangladesh (CPB) Manjurul Ahsan Khan and General Secretary Mujahidul Islam Selim said the budget would enhance the gap between rich and poor.

In their instant reaction they said the government has failed to create alternative measure for the economy.

They said the poor friendly measures including creation of employment opportunity, gender sensitivity, subsidy in agriculture sector, recovery of khas lands and administrative reforms were not ensured in the proposed budget.

Economists hail proposed budget

Staff Reporter

Economists of the country hailed the proposed budget of fiscal year 2008-09 for allocating incentives and tax holiday, which will help boost industrialisation in the country.

Eminent economist Prof Wahiduddin Mahmud Monday said the proposed budget for FY09 sought short-term solutions to the economic malaise arising out from adverse developments on many fronts.

"It represents the expected response of an interim Government to a situation of widespread food insecurity and an environment of political and economic uncertainty," he told newsmen in an instant analysis of the budget, expected to be implemented by a political government during the second half of 2008-09.

Besides, he said, many issues of the budgetary policy remain unaddressed or were only tentatively addressed, in the context of uncertainty regarding international fuel and food prices and domestic inflation and food supply situation.

Even though the proposed budget is very large in size, the emphasis has been on making provisions for continued increase in subsidies on food, fuel and fertilizer and for planned expansion of social safety net programmes, he added.

"As a result, the size of the Annual Development Plan (ADP) has got squeezed. Moreover, the Government plans to borrow heavily from the banking system to meet the increasing budgetary deficit," said the economics professor of Dhaka University.

While such a budgetary stance seems to have been forced by compelling circumstances, he said the Finance Adviser must be well aware that none of these are sustainable solutions to the problems facing the economy.

"The prevailing rates of subsidies are already putting an unbearable pressure on the budgetary balance," he said, adding that if the current rate of growth in the Government's domestic borrowing continues unabated, it will jeopardise macroeconomic stability.

Executive Director of the Centre for Policy Dialogue (CPD) Dr Mustafizur Rahman said the new budget will be helpful for investment and poverty elevation.

He lauded the measures for eliminating income and regional disparities in the proposed budget.

However, the ADP in the new budget should be more expansionary to attain the expected growth rate, he opined.

Prof Abu Ahmed of the University of Dhaka in his instance reaction said the proposed budget has allocated incentives, tax holiday and tax reduction for raw material import.

He said the budget has favoured industrialisation in the country subject to response from the private sector. The economist said businessmen should be kept free from fear factors for positive response.

Abu Ahmed said income tax ceiling should have risen to Tk 2 lakh as purchasing power of people decreased due to high inflation.

Unnayan Samannyan Chairman Dr Atiur Rahman termed the proposed national budget populist and reckless as there is no consistency between income and expenditure in it.

"This populist budget is presented to make the people happy although

it'll not be materialized in reality," he told reporters Monday afternoon at his office.

Describing money inflation as the biggest challenge for the government, Atiur said the Finance Adviser didn't mention how the inflation would be tackled although the budget will require loan of Tk 30,000 crores.

"The Government will have to take this huge amount of loan from banks and foreign donors creating severe inflation," he said.

He said the proposed budget has total deficit some 4.9 per cent of the GDP, saying that the fuel price will increase that will further fuel up inflation if there is no subsidy and necessary adjustment in this sector.

However, Atiur said the increasing budget allocations for employee guarantee scheme, climate change adaptability, social security, old aged allowance, monga-char areas and agriculture sector are the positive sides of the budget.

He said imposition of tax on cigarette and jorda products show good sign.

President of National Tax Lawyers Association Zakir Hossain and Secretary General Aziz Sarker hailed the budget for keeping allocation to face the challenge arisen due to climate change, food and fuel oil price increase.

Govt gears up bird flu preparedness

Staff Reporter

The Caretaker Government has geared up bird flu preparedness programmes across the country after the first case of human infection was identified in a child in May.

The Government has set up isolation units at different district hospitals and expanded its existing surveillance network, according to the Health Ministry sources.

Health authorities are maintaining strong vigilance to avert any outbreak of this virulent H5N1 virus that passes from birds to human.

The Construction, Maintenance and Management Unit (CMMU) under the Health Ministry have been instructed by the Government to build isolation units at 33 district level public hospitals.

Mahmudur Rahman, Director of the Institute of Epidemiology, Disease Control and Research (IEDCR), said, "In each hospital, there are at least four beds to treat patients infected with avian influenza."

"We have expanded our surveillance programme in 18 more district hospitals in addition to the existing 12 where surveillance started amid the first outbreak of bird flu in March 2007," he said.

As part of the preparedness programme for tackling human infection of H5N1, "We have stocked a large number of anti-viral drug and protective equipment," he also said.

To diagnose the infection, the Government has established a laboratory with 'real-time polymerise chain reaction,' a rapid method for diagnosis of all kinds of influenza viruses. And the machinery for the laboratory will be procured soon.

With the assistance of international financial institutions and lending agencies, the Government has already trained a large number of health professionals and people on bird flu.

There are 12-member teams in districts and four-member teams at the sub-district level for rapid action that have been working Around the clock.

"We organised different training programmes to keep the members of this rapid response team up-to-date," said Mahmudur Rahman.

Besides, there are about 226,100 volunteers at the unions (under sub-district), 50 from each union, who are working to create mass awareness, he said and adding that they are visiting door-to-door with messages and leaflets.

The first bird flu in human body was detected on May 21. The Centre for Disease Control and Prevention in the United States, diagnosed a 16-month-old Bangladesh child as being infected with H5N1.

The country's first bird flu case was detected in March 2007 in poultry. About 287 farms with confirmed H5N1 virus cases were reported in 47 districts till May 21 this year, according to the Ministry of Fisheries and Livestock.

The Government has so far culled more than 1.6 million fowl and destroyed about 2.2 million eggs across the country.

3 die in Chandpur launch collision

BSS, Chandpur

Three passengers were died in a launch collision in the river Meghna on Sunday midnight.

The accident occurred at around 2 am when the Gournadi-bound MV Manasi-2 was hit on the right by MV Sharnadiwp coming from opposite Damudda near Cherar Char, 10 miles off Chandpur river port.

According to police, the accident left three passengers dead on the spot and 15 others with minor injuries. It also caused a major damage to the structure of the MV Manasi-2.

The victims were identified Reshma Begum (30), Shahidul Islam (60) and Sifat (4). The injured were released after first aid at Chandpur.

Police seized the MV Manasi-2, but the killer MV Sharnadwip managed to escape. A case was initiated in Chandpur police station.

4-tier duty structure proposed

Staff Reporter

Finance Adviser in the new national budget yesterday proposed to restructure the duty arrangement into a four-tier system of levying duties instead of the existing three-tier one, with further cutbacks on rates for capital goods.

This will help accelerate the development of domestic industries in a bigger way, the Adviser said.

As a measure to offset high prices of consumer goods, the zero-rated duty on foodstuffs as well as fertilizer, medicines and raw cotton will continue as before.

Under the new taxing measures, the import of capital machinery and spare parts will enjoy 3 per cent duty, down from present 5 per cent.

The Government also reduced the duty on basic raw materials from 10 per cent to 7 per cent and on intermediate raw materials from 15 per cent to 12 per cent.

The highest slab for finished products remained unchanged at 25 per cent.

In the interest of quick clearance and simplification of Customs procedure of imported machinery and spares by the export-oriented enterprises, the Finance Adviser proposed to repeal the indemnity bond system and replace it with a concessionary rate of 1 per cent Customs Duty.

"For importation of machinery for textile industries, similar benefit of one-per cent concessionary rate and for importation of some other spares and inputs special rate of 3 per cent in lieu of 5 per cent are proposed."

From the Foreign Press: Bush is to Muslims what Hitler was to Jews

Report says 17 vessels used in global network

Rights group finds 200 new rendition cases

Duncan Campbell

Richard Norton Taylor

GUARDIAN, UK The United States is operating "floating prisons" to house those arrested in its war on terror, according to human rights lawyers, who claim there has been an attempt to conceal the numbers and where abouts of detainees.

Details of ships where detainees have been held and sites allegedly being used in countries across the world have been compiled as the debate over detention without trial intensifies on both sides of the Atlantic. . .

Information about the operation of prison ships has emerged through a number of sources, including statements from the US military, the Council of Europe and related parliamentary bodies, and the testimonies of prisoners.

The analysis, due to be published this year by the human rights organisation Reprieve, also claims there have been more than 200 new cases of rendition since 2006, when President George Bush declared that the practice had stopped.

It is the use of ships to detain prisoners, however, that is raising fresh concern and demands for inquiries in Britain and the US.

According to research carried out by Reprieve, the US may have used as many as 17 ships as "floating prisons" since 2001. Detainees are interrogated aboard the vessels and then rendered to other, often undisclosed, locations, it is claimed.

Ships that are understood to have held prisoners include the USS Bataan and USS Peleliu. A further 15 ships are suspected of having operated around the British territory of Diego Garcia in the Indian Ocean, which has been used as a military base by the UK and the Americans. . .

Clive Stafford Smith, Reprieve's legal director, said: "They choose ships to try to keep their misconduct as far as possible from the prying eyes of the media and lawyers. We will eventually reunite these ghost prisoners with their legal rights.

"By its own admission, the US government is currently detaining at least 26,000 people without trial in secret prisons, and information suggests up to 80,000 have been 'through the system' since 2001. The US government must show a commitment to rights and basic humanity by immediately revealing who these people are, where they are, and what has been done to them.".

A US Navy spokesman, Commander Jeffrey Gordon, told the Guardian: "There are no detention facilities on US navy ships." However, he added that it was a matter of public record that some individuals had been put on ships "for a few days" during what he called the initial days of detention. He declined to comment on reports that US naval vessels stationed in or near Diego Garcia had been used as "prison ships".

Tk. 2,000 cr allocated for 20 lakh jobs

Staff Reporter

Finance Adviser Dr Mirza Azizul Isalam yesterday proposed allocation of Tk 2,000 crore in the 2008-09 fiscal budget to create job for 20 lakh unemployed poor in the rural areas under the Social Safety-Net Scheme.

The new programme titled 100 Days Employment Generation will be designed as an employment guarantee scheme for the unemployed, the Adviser said in his budget speech.

The Advisor said the 100 Days Employment Generation Programme will ensure employment of the rural unemployed poor across the country for at least 100 days during the whole year, particularly from mid-October to mid-January and mid-March to mid-May periods.