The government would make some changes in the new VAT (value- added tax) law, providing for a couple of rates of the tax instead of the uniform 15 per cent.
Finance Minister AMA Muhith said this Sunday while talking to newsmen about how the year 2017 was for Bangladesh in respect of economic and financial situation.
"We are preparing for amendment to the new VAT law, in which a uniform 15 per cent rate of VAT has been put in place in line with the suggestions of the IMF (International Monetary Fund)," he said.
He went on: "I'm not sure about the rates now, but VAT rates would be 7.0 or 8.0 per cent and 15 per cent in the proposed amendment."
The next government would bring about the amendment to the deferred new VAT law when it will be implemented.
Presently, collections of VAT come from 4.0 per cent, 5.0 per cent and 7.5 per cent, Mr Muhith mentioned.
The finance minister, however, expressed his dissatisfaction over the present revenue-mobilisation trend.
"Although the revenue income is increasing, it is not in line with the expected level. We expected that the revenue would grow at the rates of 25 to 30 per cent as the enrolments of new taxpayers had increased substantially, most of them below 40," he told the reporters.
He also expressed the hope that the mobilization of income tax would be close to that of VAT by 2021 as the implementation of the new VAT law had been put on hold until 2019.
Stressing the need for boosting government's revenue incomes, Mr. Muhith said tax-GDP (gross domestic product) ration in Bangladesh is one of the lowest in the region-possibly in the world.
About the present economic performance, the finance minister said the country's economy would grow at a rate of nearly 7.5 per cent by the end of this fiscal year.
"The economic growth, which has been projected at 7.2 per cent, would probably be better. Maximum, the growth is expected to be 7.5 per cent," the finance minister said, on an upbeat note that runs counter to a little lower projection by some development financiers.
Mr. Muhith referred to Planning Minister AFM Mostofa Kamal who also expects such robust rate of growth for this fiscal.
Also terming the present implementation rate of this year's development budget 'very high', the finance minister ruled out experts' predictions that the performance might not be better than that of last year.
He said the level of people's comforts is now high mainly because of 'deep commitment' of the government to reduction in poverty in society, which is a necessity.
When his attention was drawn to the present mismanagement and poor performances of some banks, especially the troubled Farmers Banks Limited, Mr. Muhith ruled out the possibility of failure of any bank(s).
When asked, he said: "There is no immediate possibility of taking place merger of banks."
Responding to another query he said: "There should be 'meger move' first from private-sector banks and then the state-owned ones can follow."
The entrepreneurs of the Farmers Bank have 'destroyed' the bank, he deplored, adding: "The best solution to the Farmers Bank should be to merge with any other banks."
He also said necessary steps will be taken to bring discipline in the banking systems. About the Rohingya crisis, the finance minister said supports have been sought from the international quarters.
About the price spirals of rice on the domestic market, he said the government would take steps including initiating open-market sale of rice at lower prices to help contain its prices.
The Year 2017 was, by and large, good as there was no major destructive political act like arson attack throughout the year.
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