BNP urges govt to find new revenue sources without raising VAT

Bangladesh Nationalist Party (BNP) urges the interim government to reduce expenses and find alternative revenue sources instead of raising taxes in the current fragile economic condition.
On Saturday, at a press conference at the office of the BNP Chairperson in Gulshan, BNP Secretary General Mirza Fakhrul Islam Alamgir offered this advice.

He said: “The post-Awami fascism era, like other sectors, has created chaos and fragility in the financial sector, leading to subsequent challenges. However, BNP is concerned about the impact of such decisions on the lives of the general people.”

Mirza Fakhrul criticized the current state of the economy, saying that the country’s financial situation has worsened under the Awami League’s rule due to corruption and mismanagement.

He said: “In this fragile state, if the government tries to meet expenses by simply raising VAT rates, it will not be beneficial for the people.”

The BNP Secretary General added: “In the current situation, the government should focus first on reducing expenses. If the government reviews its development budget and eliminates unnecessary and financially unjustifiable projects, it could cut around 20% of expenses, saving up to 60,000 crore taka.”

He further suggested that the government reduce expenses by cutting local government budgets and subsidies, potentially saving at least 50,000 crore taka.

Additionally, the government could temporarily save costs by cutting down on budget allocations for autonomous institutions and halting funding for unnecessary and corrupt mega-projects, thus saving significant amounts of money.

In addition to cost reduction, Mirza Fakhrul advised the government to explore new sources and methods of revenue.

He proposed that instead of increasing VAT rates, the government could broaden the scope of VAT.

Another effective measure could be using the assets of corrupt individuals—whose properties or bank accounts have been seized—in a lawful manner to benefit the government.

He said: “At this moment, there should be a strong effort to recover black money, looted funds from banks, and non-performing loans. The government must also be more active in securing the release of funds from foreign donations or loans.”

Mirza Fakhrul also urged the government to take strong action against loan defaulters, especially the oligarchs who have not repaid loans, and to forcefully bring back the money that has been siphoned off abroad.

He further said that strong measures against tax evaders who were granted tax exemptions during the Awami League’s tenure.

He called for urgent steps to address mismanagement, lack of transparency, and corruption within the VAT and revenue administration, emphasizing the importance of ensuring transparency and accountability in the revenue sector.

Moreover, he highlighted the need for development in the agriculture sector.