The government would propose an expansionary economic policy in the next budget but at the same time with a target to maintain inflation below 6.0 per cent in fiscal year (FY) 2024-25, Finance Secretary Dr Khairuzzaman Mozumder said on Sunday.
Higher revenue collection would be required (to do so) amid the shrinking scope of getting external financing as the country is approaching middle-income status, he said.
Mr Mozumder was speaking at a seminar organised marking the National VAT Day and VAT week by the National Board of Revenue (NBR) at its premises in the capital.
He emphasised that higher domestic revenue mobilisation could be the only way to mitigate existing 'debt distresses', which is still remaining at a satisfactory level as ranked by the International Monetary Fund (IMF).
The finance secretary said the government has a target to bring down the inflation below 9.0 per cent by December from 9.49 per cent in November and below 7.5 per cent by the end of the current FY.
"The government's only challenge now is taming the rate of inflation as other factors are gradually coming under control thanks to the contractionary monetary and financial policies," he said.
Zakia Sultana, member VAT policy, presented a keynote paper at the seminar, presided over by Abu Hena Md Rahmatul Muneem, NBR Chairman and senior secretary of the Internal Resources Division (IRD).
Commerce Secretary Tapan Kanti Ghosh, the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) President Md Mahbubur Rahman, Chairman and Chief Executive Officer (CEO) of Pran-RFL Group Ahsan Khan, former VAT members Jamal Hossain and Dr Abdul Mannan Sikder, former income tax member Alamgir Hossain, incumbent income tax member Shams Uddin, among others, took part in the discussion.
On the occasion, the NBR handed over highest taxpayers' awards to nine top businesses in three categories - production, services, and business.
The NBR chairman mentioned that a handful of large taxpayers were the major contributors to tax revenue in Bangladesh, akin to India and other countries.
He stressed the need for developing an approach so that the government's revenue is not compromised while ensuring continued policy support by the revenue board to ease tax load.
In her presentation, Ms Zakia pointed out poor investment, only Tk 0.19 to collect revenue of Tk 100, as a major hindrance to mobilise tax.
The finance secretary, however, assured the NBR of considering higher allocations for its administrative expenses and automation.
The FBCCI president demanded a harassment-free environment for the businesses so that they can pay tax easily, and alleged that the VAT officials confiscate documents and machines of businesses.
Mr Ahsan Khan emphasised on keeping confidence in businesses to ensure a favorable tax-payment environment.
In the services category, bKash Limited (Jahangir Gate, Dhaka Cantonment) retained its first position like the previous year. In the second position, Brac-Aarong replaced the International Finance Investment and Commerce Bank Limited while Nagad Ltd secured the third position.
bKash Chief Executive Officer (CEO) Kamal Quadir, Brac-Aarong Chief Operating Officer (COO) Ashadul Alam and Nagad Managing Director (MD) Tanvir Ahmed Mishuk received the awards on behalf of their respective organisations.
Olympic Industries Limited (Kanchpur, Narayanganj), UniMed UniHealth Pharmaceuticals Limited in Gazipur, and General Pharmaceuticals Limited in Dhaka received the highest VAT-payers award in the production category.
Harun-al Rashid, chief financial officer of Olympic, M Mosaddek Hossain, founder and MD of Unimed, and Deputy Managing Director Sakibul Haq of General Pharmaceuticals received the awards.
In the business category, Walton Plaza (Chandra, Gazipur), Unimart Limited, and HAMKO Corporation Ltd have become the top VAT payers.
Walton Plaza Managing Director Rayhan Mohammad, Unimart CEO Murtaza Zaman, and Hamko chairman Syed Ahmed Talukder received the awards.
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