Finance Minister AHM Mustafa Kamal on Tuesday hinted that the next budget (FY22-23) would be framed in such a way where the government would eye for more revenue collection for country’s development alongside ensuring of harassment free businesses.
“The next budget for FY22-23 should be framed in such a way where the government will eye for earning necessary revenues for the sake of development and bearing its expenditure. At the same time, it should have to be ensured that the businessmen don’t face any sort of harassment. The businessmen will not be cheated in the tax system,” he said.
The Finance Minister said this while addressing the 42nd consultative committee meeting of the National Board of Revenue (NBR) here as chief guest ahead of the national budget for the next fiscal year.
Organized by the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), NBR Chairman Abu Hena Md Rahmatul Muneem presided over the meeting. FBCCI President Md Jashim Uddin moderated the meeting where the leaders of various trade bodies and associations placed their budget related proposals.
Giving assurance of considering the tax related proposals of the business community, the Finance Minister said, “The budget proposals that the businessmen have given us especially on tax will be considered positively. But, the stance of the government is to ensure a win-win situation”.
He said, “You the businessmen will not be looser. Such tax measures will be adopted so that you become winner as well as the government”.
Urging the business community to pay tax voluntarily for the sake of the country, Kamal said if the businessmen do not pay their due tax, then it will not be possible to implement mega projects like Padma Bridge.
Listing various development initiatives of the government over the last 13 years, he said that the country has now witnessed cent percent electrification thanks to the dynamic and farsighted leadership of Prime Minister Sheikh Hasina and also the relentless support from the countrymen.
The Finance Minister said the revenue collection has increased by eight times over last 13 years where the revenue collection of the NBR stood at Taka 2.59 lakh crore in the last FY21-22. Besides, the tax-GDP ratio has also increased to 10.3 percent which was 9.1 percent one decade back.
Mentioning that revenue generation has increased in the country over the years, Kamal said Bangladesh, however, is still lagging behind in revenue mobilization if it is compared with the pace of economic development. “This situation can be changed, but for this wholehearted support is needed from all,” he added.
Hoping that the revenue policy of Bangladesh would be acclaimed globally, Kamal said, “We’ve put emphasis on direct tax. Those who will earn more will pay more tax. We’re pursuing such policy and thus we’re getting its results.”
NBR Chairman Muneem said that the revenue board not only collects revenue, but also it is working on how to facilitate industrialization as well as trade and commerce.
The NBR Chairman said efforts are on to strengthen automation in the revenue system and also to enhance skills of the tax officials.
He said the NBR would try their level best to address misunderstanding with the taxpayers and thus forging a strong understanding with them.
Muneem noted that the scope for friendship should have to be created between the tax administration and the taxpayers for which both sides should have to come forward.
He also called upon all concerned to ensure compliance in the business enterprises.
FBCCI President Md Jashim Uddin at the meeting placed a set of budget proposals on behalf of the business community on the overall macro economy including on income tax, customs and VAT.
He proposed for raising the ceiling of income tax for the individual taxpayers at Taka 4 lakh from the existing 3 lakh side by side demanded for reducing the company tax at 27.50 percent from 30 percent.
Jashim also proposed for withdrawing advance income tax on import of all kinds of industrial materials including raw materials and intermediary raw materials.
Besides, he suggested for expanding the coverage of income tax and VAT, giving equal opportunity to all export-oriented sectors, strengthening alternate dispute resolution, restoring turnover tax and amending the existing VAT Act.
He also demanded of the government not to convert loans as default loans until June 30 this year considering the adverse situation in global trade.