BNP wants VAT at tolerable level

The Bangladesh Nationalist Party (BNP) yesterday demanded withdrawal of the excise duty on bank accounts and reduction of value added tax (VAT) to a tolerable level in the proposed budget for the 2017–18 financial year. “We demand withdrawal of excise duty on bank accounts and reduction of the proposed VAT ceiling on different essential commodities from 15 per cent to a level that is tolerable for the consumers,” said BNP secretary-general Mirza Fakhrul Islam Alamgir at a press conference at the chairperson’s Gulshan office.
The BNP’s demands were placed during the party’s formal reaction, 10 days after the submission of the national budget in Parliament by finance minister AMA Muhith.
“The proposed budget has simultaneously stunned, aggrieved, and frustrated us. The budget is intended to make fools of the people; it is a budget of deception,” he said.
Terming the imposition of the additional excise duty on bank accounts illegal and immoral, the BNP leader said that with a drop in the interest rate and the imposition of additional excise duty, depositors have become worried.
“We demand the cancellation of the illegal and immoral additional excise duty on bank deposits, as well as complete modification of the banking system,” he said.
Mirza Alamgir said the 15 per cent VAT proposed in the budget is the highest among south and south-east Asian countries.
He mentioned that India levies 12.5 per cent VAT, Nepal 13 per cent, and Maldives 6 per cent in all sectors except tourism, where it is 12 per cent. Vietnam, Cambodia, Indonesia, and Myanmar realise 10 per cent VAT.
The high rate of VAT will increase the prices of essential commodities, create inflationary pressures, increase life expenditure, and, in particular, increase the sufferings of middle-income, lower-income and poor people, he stated. Criticising
the size of the budget, which is 17 per cent bigger than the current budget, he said a budget cannot be considered a good one only because of its size. He termed the budget a publicity stunt, adding that though it is the largest-ever budget in size, it cannot be implemented.
“Based on our past experiences, we can say the budget is not implementable. It is unrealistic and impractical,” he said.
Mirza Alamgir also dubbed it “a budget of deprivation” and said it is not acceptable to the people.
“What is the sense in placing an enormous budget of Tk. 400,266 crore while showing a deficit of Tk. 112,275 crore? It is nothing but a big publicity-stunt budget,” he said.
He said the government, which has no accountability to the people, has created such a “budget of deprivation” and that it was not acceptable to the people.
Four BNP standing committee members—Dr Khandaker Mosharraf Hossain, Dr Abdul Moyeen Khan, Nazrul Islam Khan and Amir Khosru Mahmud Chowdhury—were present on the occasion, among others.
The BNP secretary-general alleged that products which people usually do not use have been excluded from the VAT net.
He said the undeclared aim of the budget is to implement the mega projects undertaken by the government. These projects need huge amounts of money. For this reason, the government wants to imposed the tax burden on the people to collect money.
“They (government) will use the projects in the election campaign before the next elections,” he alleged.
Mirza Alamgir said some proposals in the budget may imperil the country’s economic system. “On the one hand, money is being wasted by spending double or even quadruple amounts of time to carry out visible development. On the other hand, opportunity is being created for rent-seeking or corruption,” he said.
He expressed his concerned over the increasing rice prices, saying that it places the food security of about two crore people under threat. Mirza Alamgir asked why many investors are receiving dual citizenship and preferring to save money abroad instead of investing it in the country. He also wanted to know why the probe report on Bangladesh Bank scam remained buried.
Replying to a question, Dr Abdul Moyeen Khan said that despite the growth, the government is imposing too much tax, as the basic economy is not performing properly.

BNP wants VAT at tolerable level

The Bangladesh Nationalist Party (BNP) yesterday demanded withdrawal of the excise duty on bank accounts and reduction of value added tax (VAT) to a tolerable level in the proposed budget for the 201718 financial year. We demand withdrawal of excise duty on bank accounts and reduction of the proposed VAT ceiling on different essential commodities from 15 per cent to a level that is tolerable for the consumers, said BNP secretary-general Mirza Fakhrul Islam Alamgir at a press conference at the chairpersons Gulshan office. The BNPs demands were placed during the partys formal reaction, 10 days after the submission of the national budget in Parliament by finance minister AMA Muhith. The proposed budget has simultaneously stunned, aggrieved, and frustrated us. The budget is intended to make fools of the people; it is a budget of deception, he said. Terming the imposition of the additional excise duty on bank accounts illegal and immoral, the BNP leader said that with a drop in the interest rate and the imposition of additional excise duty, depositors have become worried. We demand the cancellation of the illegal and immoral additional excise duty on bank deposits, as well as complete modification of the banking system, he said. Mirza Alamgir said the 15 per cent VAT proposed in the budget is the highest among south and south-east Asian countries. He mentioned that India levies 12.5 per cent VAT, Nepal 13 per cent, and Maldives 6 per cent in all sectors except tourism, where it is 12 per cent. Vietnam, Cambodia, Indonesia, and Myanmar realise 10 per cent VAT. The high rate of VAT will increase the prices of essential commodities, create inflationary pressures, increase life expenditure, and, in particular, increase the sufferings of middle-income, lower-income and poor people, he stated. Criticising the size of the budget, which is 17 per cent bigger than the current budget, he said a budget cannot be considered a good one only because of its size. He termed the budget a publicity stunt, adding that though it is the largest-ever budget in size, it cannot be implemented. Based on our past experiences, we can say the budget is not implementable. It is unrealistic and impractical, he said. Mirza Alamgir also dubbed it a budget of deprivation and said it is not acceptable to the people. What is the sense in placing an enormous budget of Tk. 400,266 crore while showing a deficit of Tk. 112,275 crore? It is nothing but a big publicity-stunt budget, he said. He said the government, which has no accountability to the people, has created such a budget of deprivation and that it was not acceptable to the people. Four BNP standing committee membersDr Khandaker Mosharraf Hossain, Dr Abdul Moyeen Khan, Nazrul Islam Khan and Amir Khosru Mahmud Chowdhurywere present on the occasion, among others. The BNP secretary-general alleged that products which people usually do not use have been excluded from the VAT net. He said the undeclared aim of the budget is to implement the mega projects undertaken by the government. These projects need huge amounts of money. For this reason, the government wants to imposed the tax burden on the people to collect money. They (government) will use the projects in the election campaign before the next elections, he alleged. Mirza Alamgir said some proposals in the budget may imperil the countrys economic system. On the one hand, money is being wasted by spending double or even quadruple amounts of time to carry out visible development. On the other hand, opportunity is being created for rent-seeking or corruption, he said. He expressed his concerned over the increasing rice prices, saying that it places the food security of about two crore people under threat. Mirza Alamgir asked why many investors are receiving dual citizenship and preferring to save money abroad instead of investing it in the country. He also wanted to know why the probe report on Bangladesh Bank scam remained buried. Replying to a question, Dr Abdul Moyeen Khan said that despite the growth, the government is imposing too much tax, as the basic economy is not performing properly.