From where the money will come?
Tuesday, 17 June 2008
THIS year's trillion Taka budget is based on expectations that there would be greater tax collection. The large size of the budget is based on expectations that taxpayers, in increasing numbers will fill the government's coffers to make the budget implementation possible.
But the question is : how people can be expected to pay more taxes? More taxes are paid by businesses if they can do business in a business-friendly environment. As it is, existing businesses are unable to operate in full gear due to many problems including an unprecedented energy crunch. A number of such industries are lying idle or have closed down. Many industries, set up in the recent times, are unable to go into production as they are denied got power or gas connections. As it is, the relevant ministry has already made it clear that providing necessary gas or power connections would be difficult to new consumers, particularly those in the industrial sector, in view of shortages of both. Besides, many business houses, as the businesses have been complaining, are under direct or indirect pressure of the anti-graft drive.
In such unhelpful business conditions, how can the government expect better revenue collection? The outgoing fiscal year's higher revenue collection was the outcome of fear. This was probably a one-time experience. But fear alone will not deliver, again and again. Taxpayers must have the capacity to pay the higher taxes. Businesses operators and people in general will simply not be able to pay the higher taxes, expected from them in the next fiscal year, if their income or business turnover does not support such greater payment.
It has been stated in the next year's budget that dependence on foreign aid will not be unusually be any higher one. How can the government expect that internal mobilisation of resources will be enough to finance the budget smoothly according to the projection?
Abdur Rahim
Uttara,
Dhaka.
But the question is : how people can be expected to pay more taxes? More taxes are paid by businesses if they can do business in a business-friendly environment. As it is, existing businesses are unable to operate in full gear due to many problems including an unprecedented energy crunch. A number of such industries are lying idle or have closed down. Many industries, set up in the recent times, are unable to go into production as they are denied got power or gas connections. As it is, the relevant ministry has already made it clear that providing necessary gas or power connections would be difficult to new consumers, particularly those in the industrial sector, in view of shortages of both. Besides, many business houses, as the businesses have been complaining, are under direct or indirect pressure of the anti-graft drive.
In such unhelpful business conditions, how can the government expect better revenue collection? The outgoing fiscal year's higher revenue collection was the outcome of fear. This was probably a one-time experience. But fear alone will not deliver, again and again. Taxpayers must have the capacity to pay the higher taxes. Businesses operators and people in general will simply not be able to pay the higher taxes, expected from them in the next fiscal year, if their income or business turnover does not support such greater payment.
It has been stated in the next year's budget that dependence on foreign aid will not be unusually be any higher one. How can the government expect that internal mobilisation of resources will be enough to finance the budget smoothly according to the projection?
Abdur Rahim
Uttara,
Dhaka.