Commerce Adviser Sk. Bashir Uddin on Saturday defended the interim government’s recent move to increase Value Added Tax (VAT) saying that indirect taxes are critically important for an unregulated market.
“Depending on direct taxes may be very good for the developed economy. For an unregulated market like ours indirect taxes are critically important,” he said.
The commerce adviser was addressing a Symposium on “White paper and Thereafter: Economic Management, Reforms and National Budget” as a guest of honour organised by the White Paper Committee, 2024 in collaboration with Citizen’s Platform for SDGs, Bangladesh” held at Bangabandhu International Conference Center (BICC).
He said that the July-August uprising took place in the country last year due to massive growing inequality during the past regime and such inequality and discrimination should have to be eliminated through prudent policies.
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“Those who laid down their lives during the uprising had made the maximum sacrifices while the responsibility is now on us …on behalf of the current government, we should build the moral references to our successors to follow,” he said.
Moderated by Chair of White Paper Committee 2024 and Distinguished Fellow of the Centre for Policy Dialogue (CPD) Dr Debapriya Bhattacharya, Executive Chairman of Bangladesh Investment Development Authority (BIDA) Chowdhury Ashik Mahmud Bin Harun also spoke as a guest of honour.
Former lead economist of World Bank, Bangladesh Dr Zahid Hussain, Research Director of Bangladesh Institute of Development Studies (BIDS) Dr Kazi Iqbal, Dhaka University Prof and Executive Director of Research and Policy Integration for Development (RAPID) Dr Mohammed Abu Eusuf and CEO of Business Initiative Leading Development (BUILD) Ferdous Ara Begum made separate power-point presentations.
Former NBR member and member of the NBR Reform Advisory Committee Md Farid Uddin, Senior Economic Advisor of UNDP, Bangladesh Owais Parray, Chairman and CEO of Policy Exchange Bangladesh Dr M Masrur Reaz, President of Foreign Investors’ Chamber of Commerce and Industry (FICCI) Zaved Akhtar, Managing Director of Apex Footwear Limited Syed Nasim Manzoor, Pro VC of Dhaka University Dr Sayema Haque Bidisha, and Spokesperson of Anti-Discrimination Student Movement Umama Fatima spoke on the occasion.
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Noting that ‘change is the easy manifestation of the opportunities’ the commerce adviser said that the government should need a clear manifestation depending on its policies, resources and priorities.
He said with the digitisation of the family cards under the Trading Corporation of Bangladesh (TCB), it was found that there are some 37 lakh fake card holders.
Bashir Uddin also underscored the need for restructuring the financial structure of the TCB as the entity procures around Tk 12,000 crores of essential commodities for selling those at subsidised rates among low income group people.
Referring to the huge profit margin gained by the banks operating in Bangladesh in December last, the commerce adviser said that such profit trend does not match with the criticism that there is no growth or lack of business confidence’ in the country.
“How these banks made such huge profits, its immoral, its clearly immoral,” he said.
Putting emphasis on carrying out the reform agendas, he said that there is also a need for massive reconciliation of data.
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BIDA Executive Chairman Chowdhury Ashik Mahmud Bin Harun said that time is of economic value, but that was somehow lost in the country over the last 15 years of the previous regime.
He said that unlike the past, the interim government would now focus on developing five special economic zones instead of 100 ones through ensuring necessary gas, electricity, water facilities alongside roads and other infrastructures to appease the investors.
Ashik said that the current government is trying to merge all the facilities and services under one platform or singular point.
“We’re trying to fast track the process as much as we can. At the end of the day, we need a stable, competent and also an honest government…keep pushing us so that we can actively draw something,” he added.
Prominent economist Dr Zahid Hussain said that the path forward would depend on policies, politics and nature.
Syed Nasim Manzoor put emphasis on supporting the businesses, putting the right person in rights place, giving more focus on cost of doing business, ensure all facilities to other sectors like the RMG, stop taxing only those who pay taxes, listen to everybody and make life of the businessmen easier.
FICCI President Javed Akhtar said that the government needs to mobilise more internal resources to run its operations, but there are many ways to do it. “We need to expand the tax net if there are consolidated efforts.”
Eminent economist Dr Masrur Reaz said that the government should set priorities before framing the next budget.
He also opined that the interim government should have to strengthen further its market monitoring system, intelligence and tools to give respite the common people from the high price of commodities.