Dhaka: The Bangladesh Nationalist Party (BNP) has called on the interim government to focus on cutting unnecessary development activities and government expenses, rather than raising the value added tax (VAT). This suggestion was made during a press conference held at the BNP Chairperson's Gulshan office, where the party's Secretary General, Mirza Fakhrul Islam Alamgir, emphasized the adverse effects of increased taxation on the general populace.
According to Bangladesh Sangbad Sangstha, Mirza Fakhrul highlighted the potential savings the government could achieve by reassessing its development budget and eliminating financially unreasonable projects. He estimated that such measures could reduce government expenses by approximately 20 percent, saving around Taka 60,000 crore in the current fiscal year. Additionally, he suggested that reducing local government budgets and subsidies could save another Taka 50,000 crore.
The BNP Secretary General stressed the importance of these measures for economic stability and development. He argued that reducing government spending could potentially save at least Taka one lakh crore in the budget, thereby reducing the deficit. This would alleviate the tax burden on the common people, easing economic pressures and fostering financial stability.
Mirza Fakhrul also expressed concern over the dissatisfaction among the business community and other sectors following the sudden increase in VAT on various products. He criticized the VAT system, attributing the fragile economic condition to the corruption and mismanagement of the previous Awami League government. Increasing VAT, he warned, would not be beneficial for the country's people.
The BNP has reiterated its support for the interim government and urged it to prioritize the people's views when formulating policies. Mirza Fakhrul suggested that the government should focus on increasing direct taxes rather than indirect taxes, which disproportionately affect lower income groups. He proposed that financial problems could be tackled by reducing government expenditure and reorganizing budget management.
Mirza Fakhrul noted that the interim government has imposed VAT and supplementary duty on over 100 products amid ongoing economic instability and high inflation. Tax exemptions have been withdrawn on essential items, including food, clothing, medicines, and mobile internet services, to cover budget deficits and meet IMF loan conditions.
He expressed concerns about the impact of these decisions on ordinary citizens and criticized the past Awami League government for economic mismanagement. With foreign exchange reserves dwindling and the banking sector facing a liquidity crisis, the BNP Secretary General acknowledged the challenges in revitalizing the country's economy.
The press conference was attended by BNP Standing Committee member Amir Khasru Mahmud Chowdhury and Chairperson's Advisor Ismail Zabiullah, among others.