Former governor of Bangladesh Bank and Unnayan Shamannay Chair Prof Dr Atiur Rahman has said certain tax proposals of the proposed budget for FY2022-23 need to be reconsidered to help improve the overall budget.
He urged for reconsidering the tax proposals related to increasing source tax on interest income of all companies; increasing taxes on mobile phones, laptops, and broadband internet services; and the scope left to bring back laundered money.
Dr Atiur also pointed out that by cutting unnecessary spending further allocations could be ensured for social safety, education, and health.
He, however, said a cautious budget has been proposed for FY23 which considers both the need to reduce imports and the demand for allocations for economic recovery.
It aims to push forward an inclusive economic recovery while prioritising the socio-economic security of the people and keeping the growth momentum going.
Dr Atiur presented the keynote paper at Unnayan Shamannay’s press conference on a review of the FY2022-23 budget held in Dhaka on Saturday.
Other experts present at the session were Unnayan Shamannay’s lead economist — Robert Shuvro Guda, its policy analyst Zinia Sharmin, eminent economist Dr Jamal Uddin and sociologist Khondoker Shakhawat Ali.
Robert Shuvro informed that an average citizen spends a lot on healthcare and of that amount, over two-thirds go mainly for buying medicines.
By allocating just over Tk 1,200 crore additionally for the medical and surgical equipment sub-sector of the health budget, this burden can be eased to a significant extent, Shuvro said.
ALSO READ: Proposed budget development, public welfare friendly: FBCCI
The finance minister, in his budget speech, confirmed that if required allocations for subsidies in fuel and fertiliser will be further increased. The same principle should be followed for allocations for social safety nets as well, said Zinia Sharmin.
Jamal Uddin emphasised on raising the tax-GDP ratio and enhancing the tax collection capacity of the NBR.
He said that NBR at the moment does not have the preparation to effectively collect taxes from upazila levels.
In the concluding remarks, Shakhawat Ali praised the government for being able to come up with a budget amid numerous challenges.
He urged the policymakers to seriously consider the recommendations coming from budget reviews done by different citizen platforms.
