Though value added tax (VAT) and supplementary duty on over 100 goods and services have been raised, the government does not think it will have any major impact on the market. Rather, the effect will be marginal, the government says.
Chief Adviser’s press secretary Shafiqul Alam stated this stance of the government at a press conference, held at the Foreign Service Academy in the capital, on Sunday evening.
The government issued two ordinances on Thursday, raising VAT and duty of over 100 goods and services with the view to increase the government’s revenue.
The press secretary spoke about the rationality of raising the VAT and duty at the start of the briefing.
He said there has been a deficit of nearly Tk 420 billion in revenue collection in the first five months of this fiscal year.
The collection was Tk 1.26 trillion against the target of Tk 1.69 trillion, he informed the media.
When a newsperson asked a question in this regard, Shafiqul Alam said, “We’re not saying that there will not be any impact. But we think this would be minimum. We don’t think that will have a massive impact.”
When newspersons asked whether this increase was due to the pressure of the IMF (international monetary fund) or their condition, the press secretary said, “We also have economists here. Why should we accept the IMF’s prescription? They also know what has to be done. Economic stability is essential for the macroeconomy. You will see the value of taka going down if there is no stability in the macroeconomy. The country’s tax-GDP ratio has to be raised to achieve stability in macroeconomy. This has reached such a level that it is not sustainable.”
The chief adviser’s press secretary insisted that the government is seeking to make the health of the economy stable, make it proper; this will be better for the country.
A journalist asked him, don’t you feel that the pressure on the common will increase? And, is the government not becoming unpopular for taking the decision to raise VAT-duty?
Responding to the question, Shfiqul Alam maintained, “I don’t see any question of turning unpopular; rather, the government is keeping its gaze so that the economy of Bangladesh remains well. I think, it is the responsibility of the journalists to make people understand why this has been done, what’s the context; it is a responsibility of all of us to inform this (to the people.”
He expressed, “We could say many populist words, but I think a reality check is more important than being populist. The kind of broken economy (the previous government) left behind, you just take a look, how money was wasted; it knows no bounds. A rail track has been constructed, but only one train operates there.”
Newspersons asked the press secretary questions on hiking gas prices, especially those who would take new gas connections for industries will have to pay double the price. Whether this decision would hinder new investment?
The press secretary said adviser Fouzul Kabir Khan has already spoken about that.
The Jatiya Nagorik Committee demanded the immediate withdrawal of the ordinances on raising VAT and duty. Others also spoke on this. In this context, whether the government has thought about reconsidering the matter?
Shafiqul Alam said the government has heard them.
Responding to another query over the government’s steps to return the laundered money, he said bringing the laundered money back to the country is the government’s top priority.
He said the government is tracing where the money was siphoned off and it continues contacts with all possible countries where money was laundered and it is getting overall cooperation from these countries to this end.
He further said a taskforce led by the Bangladesh Bank governor has been working on this.
Chief Adviser’s deputy press secretaries Apurba Jahangir and Abul Kalam Azad Majumder and assistant press secretary Suchismita Tithi were also present here.
source : prothom alo
