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Government focused on increasing revenue from direct tax, says minister

| Updated: March 28, 2022 17:55:20

Government focused on increasing revenue from direct tax, says minister

Finance Minister AHM Mustafa Kamal on Tuesday said the government is focused on increasing revenue from direct tax to give relief to the lower income people from the tax burden.

He also assured that no one will be unfairly burdened as NBR is considering a win-win tax rate in the upcoming national budget.

The minister came up with the remarks at the 42nd consultant meeting of National Board of Revenue (NBR) ahead of national budget for FY23 at a local hotel.

Kamal said the government's revenue collection increased by eight times in the last 13 years and the volume of revenue was Tk 2.59 trillion in FY21.

He said businesses are contributing to the country's development including construction of Padma Bridge by providing tax, as per a report on UNB agency.

The government wants to expand tax net rather than increasing tax rate to force a competitive business environment, he said.

NBR Chairman Abu Hena Md Rahmatul Muneem, president of the Federation of Bangladesh Chambers of Commerce & Industries (FBCCI) Md Jasim Uddin, vice president, and different chamber leaders spoke in the function.

The NBR chief said the revenue board has been focusing on facilitating the expansion of growing trade and investment by policy support instead of targeting increased revenue collection.

He said the country's revenue goes up when business and investment expanded.

He said, "We sometimes make mistakes in tax calculation or do wrong measurement, which can be resolved by discussion if you (businesses) have remained honest in intention."

However, the business leaders have wanted additional tax exemption facility in the next budget to rebound from the adverse impact of Covid-19 pandemic losses.

The traders have proposed various measures of income tax, VAT and duty as well as initiatives to reduce the prices of essential commodities.

The FBCCI has recommended exemption of VAT and supplementary duty on consumer goods, general transportation of essential commodities, essential goods and services, waste management, recycling, direct non-tender repair work in the service sector.

The country's apex trade body has also recommended an investment-friendly tax structure for all sectors, including small-medium and new industrial entrepreneurs.

Jasim said the government needs to strengthen its monitoring system to control commodity prices ahead of Ramadan.

"Inflation is becoming tougher to control. This is putting pressure on ordinary consumers," he added.

In this situation, he proposed for import duty concessions in proportion to the total estimated import duty on the import of essential commodities.

In response Rahmatul Muneem said withdrawing taxes would not bring impact on the commodity prices.

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