Import of luxury items to be controlled: Kamal

Finance Minister AHM Mustafa Kamal on Wednesday said that luxury goods imports will be controlled until global inflation falls to a manageable level.

“The Bangladesh Bank always controls the import of some non-essential items, however, there will be no restrictions on consumer goods that are needed by people and are required for project implementation,” said Kamal.

“The government will surely take steps, which will bring comfort to the lives of the general people,” the finance minister said while briefing reporters after two consecutive meetings of the Cabinet Committee on Economic Affairs (CCEA) and Cabinet Committee on Government Purchase (CCGP).

He informed that the central bank has taken an initiative to control the import of luxury items and increase the margin for letters of credit (LCs).

This initiative will stay in place until commodity prices come down in the international market, he added.

Referring to the country’s widening trade deficit he said, “Our exports are growing and so are our imports.”

“Imports are always higher than the exports for Bangladesh. No matter how much growth there is in exports, it will never exceed imports,” he added.

Kamal said this in responding to a question about whether Bangladesh Bank will take more measures to control imports to avoid any unwanted situation like Sri Lanka or Nepal.

Many economists expressed concerns over Bangladesh’s growing foreign debts while Bangladesh Bank also imposed some restrictions on the import of some items. He said as internal vulnerability exists, these luxury items will be controlled.

“If the situation becomes normal, then we will allow the import of these items”, he opined.

Referring to a report of the World Bank the finance minister said globally the market prices have gone up by 38 per cent while the price of beef has increased by 35 per cent, chicken by 55 per cent, soya bean oils by 35 per cent, tea by 13 per cent, TSP fertiliser by 65 per cent and urea fertiliser by 135 per cent.

So, we have to take coordinated measures to control the market, said Kamal.

Budget to be placed on June 9

The budget for the upcoming fiscal year (FY23) is scheduled to be placed in parliament on June 9.

The initial size of the budget is set at Tk 6,77,864 crore and the target for revenue income is Tk 4,31,657 crore.

When asked about the possibility of increasing the tax-free income limit from Tk 3 lakh, the minister said the details of the issue are yet to be set.