BNP Secretary General Mirza Fakhrul Islam Alamgir has said the interim government's decision to impose new taxes and VAT would further burden the public.
He also called for the immediate withdrawal of what he termed an irresponsible decision to impose indirect taxes on the general public.
Mirza Fakhrul made the plea while speaking at a press conference at the BNP Chairperson’s political office in Gulshan on Saturday (January 18) morning.
He said that amidst ongoing economic instability and soaring inflation, the government has introduced VAT and supplementary duties on over 100 products while removing tax exemptions on essential goods, including food, clothing, medicine, and mobile internet services.
He warned that this move would severely impact the daily lives of ordinary citizens, particularly the poor and middle class, adding to their financial strain.
He pointed out that the government's justification for the tax hikes is to bridge the Tk 42,000 crore budget deficit for the current fiscal year and to meet the tax-GDP ratio conditions required for the IMF loan.
However, he argued that this approach stems from the government's inability to manage expenditures with existing revenue.
He also criticized the government for recently printing Tk 22,500 crore to address the liquidity crisis of banks that had been looted, further fueling inflation.
Fakhrul said that Bangladesh is facing serious financial challenges following the downfall of the Awami League-led administration, which, according to him, had crippled the economy through years of corruption and mismanagement.
He stressed that restoring economic stability is a major challenge for any future government. However, instead of adopting a well-planned approach to economic restructuring, the interim government has abruptly raised VAT and customs duties mid-fiscal year—an easy but harmful solution for the people.
He further criticized the government’s decision to print money in November to ease the liquidity crisis, despite earlier promises that no new money would be printed. He argued that this move has further fueled inflation, pushing the public toward financial distress.
Reiterating BNP’s willingness to support the interim government in tackling economic challenges, Fakhrul urged policymakers to consider public opinion before implementing tax policies.
He recommended prioritizing direct taxes over indirect ones, as indirect taxes disproportionately affect lower-income groups. Instead of burdening citizens, he suggested addressing financial shortfalls by reducing government expenditures and restructuring the budget.
He stressed the need for stronger efforts to recover black money, retrieve funds looted from banks, and recover defaulted loans. Citing the government’s own white paper, he highlighted the importance of reclaiming approximately $234 billion (Tk 28 lakh crore) lost to corruption and misappropriation.
Fakhrul also blamed the government’s allies, who he said remain entrenched in the VAT and revenue administration, for persistent mismanagement, lack of transparency, and corruption, which have hindered revenue collection. He argued that rather than burdening the public with indirect taxes, the interim government should focus on ensuring accountability in revenue administration and curbing corruption.
The press conference was attended by BNP Standing Committee Member Amir Khasru Mahmud Chowdhury and Chairperson’s Advisor Ismail Zabiullah.
BDST: 1445 HRS, JAN 18, 2025
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