The government is set to propose an expansionary economic policy in the next budget for FY25, while also trying to maintain inflation below 6%, Finance Secretary Dr Khairuzzaman Mozumder said on Sunday.
But to realize this, higher revenue collection would be required, as getting external financing would get reduced as Bangladesh approached middle-income status, he also said.
Mozumder was speaking at a seminar organized marking the National VAT Day and VAT week by the National Board of Revenue (NBR) at its premises in the capital.
He emphasized that higher domestic revenue mobilization could be the only way to mitigate existing debt distresses, which is still remaining at a satisfactory level as ranked by the International Monetary Fund (IMF).
The finance secretary said the government has a target to bring down the inflation below 9% by December from 9.49% in November and below 7.5% by the end of the current FY.
Zakia Sultana, member VAT policy, presented a keynote paper at the seminar, presided over by Abu Hena Md Rahmatul Muneem, NBR chairman and senior secretary of the Internal Resources Division (IRD).
Commerce Secretary Tapan Kanti Ghosh, the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) President Md Mahbubur Rahman, Chairman and Chief Executive Officer (CEO) of Pran-RFL Group Ahsan Khan, former VAT members Jamal Hossain and Dr Abdul Mannan Sikder, former income tax member Alamgir Hossain, incumbent income tax member Shams Uddin, among others, took part in the discussion.
On the occasion, the NBR handed over highest taxpayers' awards to nine top businesses in three categories - production, services, and business.
The NBR chairman mentioned that a handful of large taxpayers were the major contributors to tax revenue in Bangladesh, akin to India and other countries.
In her presentation, Zakia pointed out poor investment, only Tk0.19 to collect revenue of Tk100, as a major hindrance to mobilize tax.
The FBCCI president demanded a harassment-free environment for the businesses so that they can pay tax easily, and alleged that the VAT officials confiscate documents and machines of businesses.
Ahsan Khan emphasized on keeping confidence in businesses to ensure a favorable tax-payment environment.