Terming the tax policy in the proposed budget 2014-25 anti-poor and against the principles of redistributive justice, rights activists on Sunday said the government is going to reimburse the capital of around Tk 5,000 crore for public banks from tax payers’ money, which will encourage primitive accumulation.
The public banks are suffering from capital deficits because of corruption mostly done by the different companies and supported by politically appointed directors of those banks, they said at a press conference in the city.
Some 24 rights-based civil society organisations and networks, led by EquityBD, organised the press conference at the Jatiya Press Club.
Reading out the group’s position paper, rights activist Ahsanul Karim said the government has expanded tax and tax net, but reduced the subsidies and budgetary allocation in essential service sectors like agriculture, health and education.
“This has been done actually to fulfill the conditions of IMF (International Monetary Fund) to get the ECF (Extended Credit Facility) loan, which is hardly acceptable in view of justice framework,” Karim said.
He expressed the doubt about the collection of Wealth Tax from the rich, which might enhance the passage of illicit capital transfer from the country again.
He said the new VAT law to be activated from 2015 for having the world’s highest average VAT rate of 15 percent as proposed and expanded up to the rural area and for bringing 536 products under it in place of previous earlier 23. “This is also made to attain the IMF conditionality.”
VAT is always regressive to poor, Ahsanul Karim said, adding that the government has not enhanced tax free income level that will only put pressure on the middle class.
Equity BD chief moderator Rezaul Karim Chowdhury, Kamruzaman Kochi of Jatiya Krishok Jote, Subol Sarkar of Bangladesh Bhumihin Somity, Badrul Alam of Bangladesh Krishok Federation and Mostafa Kamal Akanda of EquityBD, among others, spoke at the press conference.
Source: UNBCo9nnect
