Secretary General of Bangladesh Jamaat-e-Islami, Dr. Shafiqur Rahman has issued the following statement on 13th June, 2017 urging to reconsider the illogical proposals of the proposed budget of the 2017-18 fiscal year including imposing 15 percent flat VAT rate and 8 percent excise tax on one lac taka deposit.
“The proposed budget of 2017-18 fiscal year has proposed to impose 15 percent flat VAT rate and 8 percent excise tax on one lac taka bank deposit, which is completely irrelevant and a clear oppression against the countrymen. The proposed budget is a great negative signal for the entire economy.
The proposed budget is being criticized in all the local and foreign quarters. The countrymen are witnessing the impact of the imposing 15 percent flat VAT rate. As the immediate reaction, price of the essentials including rice, lentils, sugar, fishes, beef, spices, oils. Rice is being sold at 55-70 taka per kilogram and sugar is being sold at 70-75 taka per kilogram. The sufferings of the middle class and the low income peoples know no bounds now.
The businessmen and traders community are in deep worries due to 15 percent flat VAT rate. They have strong reservations about the VAT law and the relevant calculations. According to the budget proposals, along with the sold items, the record of the bought items also needed to be demonstrated. Generally 7 percent VAT has to be paid if a customer takes food in a hotel or restaurant. But the customers have to pay 15 percent VAT from 1st of July. It will increase production cost as well as the consuming cost. The consumers will be affected as well. It will increase inflation too.
At present, the consumers pay 5 percent VAT in their electricity bill but it will be 15 percent from next 1st of July. It will make another price hike of electricity and all types of gases. Resultantly, public sufferings would go high. 8 hundred taka excise tax on one lac taka deposit will decrease public interest to deposit money.
The countrymen have rejected the farcical election of 2014. So the incumbent government’s moral and constitutional legitimacy is seriously questionable. As the government is not elected, their activities are being taken naturally against the public interest. Their steps actually appear like revengeful steps against the people.
In this backdrop, I am urging the concern authorities to reconsider the illogical proposals of the proposed budget of the 2017-18 fiscal year including imposing 15 percent flat VAT rate and 8 percent excise tax on one lac taka deposit for the sake of the public interest.
