Steps to rein in volatility in forex, commodity markets soon: Cabinet

Fiscal measures to rein in volatility in commodity and forex markets are coming in few days as Prime Minister Sheikh Hasina has directed specific steps towards the end.

Sheikh Hasina on Thursday at a cabinet meeting directed the authorities concerned to make within next three days a realistic assessment of the prices of the essentials, foreign currency volatility and challenges ahead.

The finance ministry, commerce ministry and Bangladesh Bank will give a “comprehensive picture within two or three days,” Cabinet Secretary Khandker Anwarul Islam said at a media briefing after the meeting.

The Cabinet directed that the report should include measures to be taken in overcoming the challenges in the wake of the Russia-Ukraine war and the Covid-19 pandemic.

The ministries and the central bank have been asked to submit the report especially to detail on “How to handle the matter, where to put restrictions and where to ease them,” Khandker Anwarul said.

He also mentioned that the issue of the price of US dollar will also be in that comprehensive report.

He said the Cabinet approved Haat and Bazar (establish and management) Act, 2022 in principle to replace an Ordinance of 1959 regarding the matter to make it time befitting.

He said that there are 26 articles in the proposed law. As per the law no one can set up any haat and bazar without permission from the government.

Khandker Anwarul said Land Development Tax Act, 2022 was also approved by the Cabinet which will replace Land Development Tax Ordinance 1976.

As per the law land development tax up to 25 bighas of agricultural land will be free, which was done by Bangabandhu.

But If anyone ownes more than 25 bighas of land then that person has to pay tax for the whole land.

For not paying of land development tax more than three consecutive years, the penalty will be 6.25 per cent per annum.

Personal or family owned graveyard was put under the purview of this tax.

The cabinet secretary said that the meeting also discussed the COVID-19 related matters and was apprised that World Bank has allocated around USD1billion loan to Bangladesh to carry out next programmes. The country has shown tremendous success in tackling COVID-19 pandemic situation.

Responding to a question about the opening of Padma Bridge, he said it is hoped that the bridge will be opened for traffic in last week of June.

Responding to another question he said that the prime minister several times in the past said the name of the bridge will be Padma Bridge.

“She will clear the matter any day,” he said.

Regarding the toll for vehicles for crossing the bridge, he said that usually the toll is fixed at the 1.5 times higher than the ferry fee.