Home Today's Paper Most Popular Video Gallery Photo Gallery
Subscription Blog Signin Register
Logo
Tuesday, December 12, 2017 04:46:51 AM
Follow Us On: Facebook Twitter Twitter Twitter Twitter

Economists for 12pc VAT to be tolerable

By
18th-Apr-2017       
Comments
Share your thought
Post a comment »
Read all () »

IN a pre-budget meeting economists have said the Value Added Tax (VAT) rate should be 12 percent in the country in line of the low- and middle-income countries in South and East Asia and we must say it is a highly sensible proposition. Their suggestion at a meeting at Brac Inn also asked the government to adjust VAT rates with prices of utilities such as gas and electricity to avoid serious burden on consumers. Particularly they have called for reducing the prices of kerosene and diesel used by the poor and in mass transports and irrigation. They are quite right when they said it is important to keep the adverse impact of higher VAT on low-income people.   

Economists have pointed out that VAT rate at 15 percent is on the high side for Bangladesh when compared to neighbouring low-and middle-income countries in the region. They have therefore rightly suggested the rate should be at 12 percent. The government is going to introduce VAT at 15 percent it in the next Fiscal Budget for 2017-18 to begin from July this year. Economist Towfiqul Islam Khan said the global standard rate is 15 percent, but in South and East Asia and among low-and middle-income countries, it is 12 percent. So Bangladesh must go for it instead of overloading business and common people with higher rate in a single drive.

The next budget will be for Tk 4.02 trillion as the Finance Minister hinted. Economists said the revenue expansion in the next budget with a huge jump in VAT collection will enable the government to lower the rate without adverse impact on revenue collection. They have feared that depreciation of the value of money with a rice price hike and further increase in tariffs for electricity and gas will add new burden on industry and common users of utilities. Consumers will have lower disposable income due to declining remittance inflow and the increase in indirect tax coverage.

To reduce the impact, they have suggested cuts in the prices of kerosene and diesel, which would help raise consumers' disposable income.

Economists have made a timely warning that the cost of production in almost all sectors might go up with new VAT law. So the government must not lose sight to its adverse impact on the economy and business.

In our view the government must not take giving a huge budget as the only priority when a bigger part of such budget is being misused in big corruption and grabbing of fund under the cover of mega projects. Big budget is targeting businesses and common people to pay but the benefits are mainly going to people at the Center of Power and getting construction and supply contracts. So there must be balanced outlook to leave lower burden on poor and low-income people. Business also must not be unduly overloaded. So the VAT law must be put into affect accordingly.


Tariff
Add Rate

News Archive

Inside The New Nation

National »

Gafargaon Liberation Day observed


Gafargaon (Mymensingh) Correspondent :Gafargaon Liberation  Day  was observed through gathering of freedom fighters, mass people , human-chain,rally  on December 9 .  Discussion meeting , human-chain  and rally were held adjacent to Charalgi Vatipara Abdus Satter High School. Central Vice Chairman of  Muktijuddha Sanghoti Parishad and  MP aspirant  of  Awami League ...

International »

California`s Thomas fire scorches area larger than NY City


BBC online :The most destructive wildfire raging in southern California has expanded significantly, scorching an area larger than New York City.The Thomas fire in Ventura and Santa Barbara counties has consumed 230,000 acres (930 sq km) in the past week.Fanned by strong winds, it has become the fifth largest wildfire ...

Editorial »

Relocation of tannery in Savar is failing to meet the purposes


RELOCATING the tannery industry from Dhaka to Savar was taken in order to prevent land, water and air pollution, and also to install discipline and order in the industry. In short - it was meant for a complete overhauling of the industry. However, the plans have not worked in the ...

Cricket »

Mushfiqur Rahim going to be a father


Sports Reporter :Former captain of Bangladesh National Cricket (Test) team Mushfiqur Rahim is going to be a father of a baby soon. His wife Jannatul Rifayat Mondi is pregnant. If everything goes well she will be a mother of a baby soon. Mushfiqur Rahim failed to show notable performance in ...

Entertainment »

Nargis Fakhri to play an Afghan girl in Sanjay Dutt`s Torbaaz


Nargis Fakhri has been away from the silver screen for a while now. But it seems the wait for her fans has got over. The actor has bagged an interesting project opposite none other than Sanjay Dutt. Nargis will be seen playing an Afghan girl who runs an NGO in ...

City »

BNP Secretary General Mirza Fakhrul Islam Alamgir distributing winter clothes among the cold-hit people in the city on Monday. BNP Dhaka Mahanagar Dakshin organised the programme.


International »

Chinese billionaire-in-exile wants regime change in Beijing


AFP, New York :Billionaire Guo Wengui, who is seeking asylum in the United States after accusing officials in his native China of corruption, wants "a change of the regime" in Beijing and the introduction of democracy in the world's most populous country."I want to try and to have rule of ...

Editorial »

Aman harvest has no effect on rice market


PASSING the Aman harvest, rice price has not come down as government leaders earlier said and rather gone up to the dismay of the common people all over the country. Though farmers are happy with higher price; although they have suffered production loss at many places due to late receding ...

Cricket »

Players of Comilla Victorians celebrating after dismissal of Chris Gayle of Rangpur Riders during the Qualifier-2 match of the AKS Bangladesh Premier League (BPL) Twenty20 Cricket between Comilla Victorians and Rangpur Riders at the Sher-e-Bangla National Cricket Stadium in the city's Mirpur on Sunday.


Sports »

Members of Rongdhanu RDS, the runners-up of the Hedayet Hossain Memorial Night Cricket Tournament pose for a photo session at Bangladesh Ground in Old Dhaka recently.


Entertainment »

Gauhar makes to sexiest Asian list for fourth consecutive time


For the fourth consecutive year, Bollywood actress and model Gauhar Khan has been voted to the top 10 list of ‘50 Sexiest Asian Women list’ in the world. It is an annual UK poll, which has been released in London recently. The actress, who is known for her choice of ...

City »

Convenor of Nagorik Oikya Mahmudur Rahman Manna speaking at a discussion organised by 'Mayer Dak, a social organisation at the Jatiya Press Club on Sunday with a call to bring back forced disappeared people to their mothers' laps.


International »

Ex-Fox news anchor Huddy claims Trump kissed her


Huff Post :A former Fox News anchorwoman who accused Bill O'Reilly of sexually harassing her in 2011 is now claiming that Donald Trump kissed her on the lips in an elevator.Juliet Huddy said Thursday morning on the "Mornin!!! With Bill Schulz" podcast (which has a paywall) that it happened around ...

Editorial »

Dust pollution takes toll in cities’ air


PRESENCE of dust and pollution in the air of our cities has reached alarming levels. It's happening mainly due to chaotic construction works, poor management and protracted traffic jams. According to Air Quality Index Report of the Department of Environment's (DoE) "Clean Air and Sustainable Project" earlier this month, air ...

Sports »

Chanchal emerges unbeaten champion in Blitz Chess Championship


BSS, Dhaka  :Chanchal Kumar Ghosh emerged as unbeaten champion in the Blitz Chess Championship with 6.5 points after the 7th round game on Friday at E Commerce Club hall room in Uttara. Five players finished in second to sixth position with 5.5 points after the tie breaking system. They are ...

 
Items that you save may be read at any time on your computer, iPad, iPhone or Android devices.
 
Are you new to our website? Do you have already an account at our website?
Create An Account Log in here
Email this news to a friend or like someone
Email:
Write a comment to this news