Bangladesh interim government chief adviser press secretary Shafiqul Alam on Sunday said the government was trying to take the country鈥檚 tax-GDP ratio to a healthy state by imposing a simplified 15 per cent VAT in a bid to ensure the country鈥檚 economic growth.
He said this at a press briefing held at Foreign Service Academy in Dhaka.
Alam said the tax-GDP ratio in Bangladesh has been going down since 2021. It has reached such a level this year that there is a revenue shortfall of about Tk 42,000 crore in the past five months, he added.
鈥榃e had a revenue collection target of Tk 1,69,000 crore (during past five months) but we have collected over Taka 1,26,000 crore,鈥� he said.
Mentioning that Bangladesh鈥檚 tax-GDP ratio is one of the lowest in the world, Alam said the tax-GDP ratio must reach a better position for the growth of Bangladesh and wellbeing of its people.
In this context, VAT on some items have been raised, he said, adding that there were different rates of VAT and the government was trying to bring those to a simplified 15 per cent rate to cut the tax leakage.
After resuming the power, the government is trying to cut public expenditure, the press secretary said, depicting the widespread misuse of public money during the ousted regime.
He said the deposed government misused public money in all sectors while the Karnaphuli Tunnel was built in Chattogram and a seven-star hotel was constructed, spending Taka 450 crore public money, on other side of the tunnel so that former minister Saifuzzaman Chowdhury could take rest there.
He said if the tax-GDP ratio dwindles, it may become impossible to repay the debit Bangladesh has.
Considering this, the government has decided to increase taxes, Alam said, adding that the money will be spent for the welfare of the country鈥檚 people.
Replying to a question, the press secretary said the impacts of new taxes will be minimal on the country鈥檚 people.
Responding to another query over the government鈥檚 steps to return the laundered money, he said bringing the laundered money back to the country is the government鈥檚 top priority.
He said the government was tracing where the money was siphoned off and it continued contacts with all possible countries where money was laundered and it was getting overall cooperation from these countries to this end.
Chief adviser鈥檚 deputy press secretaries Apurba Jahangir and Abul Kalam Azad Majumder and Assistant Press Secretary Suchismita Tithi were present.
