People see situation ranging from “helplessness” to “opportunity” in the proposed budget depending on their family income.
For most, including people with a six-digit monthly income to those who have an average earning of Tk15-20,000, price of essentials seemed to be the key concern in the budget.
Although the duty structure on tea, meat, fish, baby food, edible oil and other items were revised to bring prices down, the likely hike in prices of gas cylinders, electricity, fuel and powder milk has become a cause of worry.
Some even expressed hopelessness saying the budget would only see the prices rising. Due to syndication, it is unlikely prices would go down even if the duty on any product is lowered. Even before the budget was passed, such syndicates have become evident in city markets.
People have blasted the government’s decision to allow money-whitening scope and urged it to address the blackening of the money first.
Others have expressed frustration over the lowering of duties on second-hand cars saying the government should have concentrated on developing public transportation, as additional vehicles would only add to the existing congestions.
The increase of tax on imported cosmetics brought about mixed reactions as well with some saying they should be allowed to avail quality products from abroad while others voiced for protecting the country’s industry.
Increased duty on imported clothing products, however, was termed as a promise to stretch the pocket with Eid just around the corner.
The current budget has also provided some families opportunity to register their flat at a lower cost as the government cut the registration cost.
Fuel price real concern
The middle class of the society is not mainly worried about the budget but rather is concentrating on the effects it would have on the price of daily essentials. Some even argued that the national budget should focus more
on prices of factors like power and
energy, which affect daily life on a regular basis.
“Not budget, power and fuel cost badly affect our lives,” A lawyer with an average monthly income of Tk50,000, Hafiza Begum, told the Dhaka Tribune on Friday.
She continued that it is very hard to calculate loss or gain by looking at the budget. “It is as usual for us, there are only little changes. But factors like readjustment fuel prices becomes the main concern, we wait for it after the budget.”
She also blasted the government for hiking duties on powdered milk. “It is not very easy to get liquid milk in the big cities. Those sold in packets are very expensive. Powdered milk was a viable option for a lot of city folks, but even that has become costly.”
Hafiza who is single and lives with her aged mother in Green Road area also criticised the individual taxation clauses. “The benchmark of minimum tax should be increased. Individual tax free income for women should at least have been Tk300,000.”
The lawyer also blasted the government for lowering tax on second-hand cars. “More cars would mean more traffic congestion and old cars would look bad on the streets also. Alongside comfort, we also need to save time.”
However, Hafiza was not all against the changes the proposed budget put forward. Applauding the rise in duties on foreign cosmetics, imported fruits and flowers, she said, “We produce quality toiletries in our own country, why should be think foreign?”
She also expressed hope that the lowering of supplementary duties on digital equipment like camera and other accessories would have a positive affect.
Hafiza continued: “Budget is only some figures for us. If the government made it meaningful for us, the people would have cared more.”
Budget disappoints public servants
The public servants in general, mid-level officers and lower tier employees, have expressed their disappointment over the budget proposal tabled in the parliament on Thursday saying that there is “nothing” new but a commitment of constituting “Permanent Pay and Service Commission”.
A deputy secretary of the labour ministry, on condition of anonymity, told the Dhaka Tribune yesterday: “Despite the huge inflation and price hike of commodities, the government did not give us any additional benefits since the National Pay Scale 2009 that was effective from July of that year.”
“The government has only announced that a pay commission will be constituted after four and half years of the last one’s recommendations were implemented. Civil servants are outraged by this,” he said.
He pointed out that daily expenses have doubled and nearly tripled from the time the previous pay commission was declared and it would increase more after the proposed budget is implemented.
According to the current pay-scale, a deputy secretary-level official gets Tk25,750 as basic salary. The addition of 50% of the amount as house rent, Tk 700 as medical allowance and some other benefits bring their total income to around Tk40,000 per month.
“It’s not adequate to run a four-member family in the Dhaka city now-a-days. Everyone who is living in Dhaka needed at least taka 15,000 to 25,000 taka additionally to maintain the family expenditure,” he added.
He backed his claim by saying that at least taka 3,000 is needed as medical expenses for a four members family in a month, another Tk15,000-20,000 spent behind education expenses of two children. The government cuts house rent and 7.5 percent of the main salary as maintenance charges for those officials who have been living in government quarter. But, most of the officials who have been living in rental houses have to spend additionally as house rent in Dhaka city is so high. They also need at least taka 20,000 for feed and taka 20,000 for other expenditures.
“It will be so difficult to stay and sustain a suitable life in Dhaka, if the government does not announce dearness allowances, the official said.
Middle class officials and lower employees also echoed his view and demanded that the government should immediately announce dearness allowances or at least four increments.
Meanwhile some employee’s leaders said that despite their demands and commitment from the higher authority of the governments, the finance minister gave them nothing in the budget. He, even, did not announce additional increments for them considering the high price of commodities.
Bangladesh Secretariat officers and employees OikkoParishad’s acting President Nazrul Islam and Bangladesh Secretariat Personal Officers Association’s General Secretary Kamal Hossain on Friday told the Dhaka Tribune that the proposed budget met none of their expectations. The employees are agitated over it.
“They said that, it’s really difficult to maintain a suitable life with the present pay scale. A four members family of an employee is needed at least taka 20,000 to 30,000 to maintain all the expenditures. But, they get only taka 11,000 to 18,000 which inadequate for them.
Budget sparks concern among low-income group
The proposed budget sparked concerns among people of fixed income that their costs of living would go up further.
The finance minister on Thursday tabled the budget plan for fiscal year 2013-14, and proposed a raft of tax measures for various imported consumer goods and groceries.
Higher taxes were proposed on several items such as milk powder, baby food, fruits, fishes and flowers, LPG cylinder, cigarettes, mats and potato chips, while taxes were reduced on soybean oil, sweet biscuits, fluorescent light, etc.
People, however, are worried that these measures may impact their lives unfavourably.
Nasir, a shopper in Dhanmondi, said: ”I earn around Tk30,000 per month. Half of that money goes into my house rent. I have no idea how I am going to cope with the food price inflation and rising prices of goods.”
Mumu, who works at a media organisation with a monthly income of Tk30,000, also expressed frustration with the budget announcement. “Except for the proposed allocation in education, I am not happy with this budget at all.”
“I am sure it will affect my daily life in a bad way since house rents, prices of essentials and other commodities are all going to increase,” she said.
Nasrin, a housewife, is worried about the price hike of gas cylinders. “See, I am living in Sekhertek-7 where the government didn’t allow gas lines. We have to purchase gas on a regular basis. What will we do if the price of cylinders goes up? I don’t know if this is an attempt to make the poor poorer.”
Joy, a private bank employee, said: “In light of the proposed budget, we have to pay more taxes now since our government will need more money to implement this big, ambitious budget. Will our salary also increase to cope with this budget? I doubt.”
Mixed budget for mid–income families
Rashid and Salma own a flat measuring just over 100 square metres at Dhaka’s Mohammadpur area, but it is yet to be registered.
The current budget has provided them an opportunity to register the flat at a lower cost as the government cut the registration cost.
The budget placed before the parliament on June 6 has provided breathing room for them, but at the same time, some components indicates that their regular day-to-day expense would increase.
Rashed is working for a private firm while his wife Salma is a banker and together they earn over Tk 100,000 per month.
The increase in individual tax slabs would reduce the couple’s tax burden relatively, said Rashed while talking to the Dhaka Tribune on Friday.
“In our everyday life, we consume tea, meat, fish, baby food, edible oil and other items. The budget reduced duty structure on these items. I hope it would cut our monthly expenditure down,” he said.
“It is encouraging that there is a possibility of a price cut in sugar confectionary items, sweet biscuits, chocolate, wafer and toasted bread as these are consumed by my children,” said Salma, mother of two.
The duty-cut on imported fabric is also likely to reduce the burden on her purse, especially with the month of Ramadan approaching, said Salma.
The budget for the 2013-2014 fiscal has also seen a duty-cut on furniture, which will give respite to any middleclass family buying these products, she said.
Though the family is not considering buying a car at the moment, the duty reduction on reconditioned vehicles would allow them to give it a second thought.
However, a further duty on powdered milk, cold drinks, potato chips, perfume and toiletries will increase the regular costs of the family, said Salma.
“My children consume milk, cold drinks and potato chips and it will increase regular expenses,” she said.
She also expressed her dissatisfaction over the possible price hike of toiletries.
“The government has plans to protect the local industry and its okay with me, but, as a consumer I want to buy the best products at the lowest possible price,” Salma said.
