While we can sympathize with the current authorities about needing to take the difficult decision of increasing VAT and Supplementary Duty (SD) on a range of products, what is disappointing is the lack of consultation with relevant key stakeholders before taking such an important decision.
Indeed, we have seen in the past how simply hiking up such indirect means of generating revenue for the nation does not truly help. Instead, what has always been the need for Bangladesh has been to create an environment where there are more willing taxpayers, and it starts with simplifying the tax paying procedure.
What is more concerning is that in addition to consumers being subjected to higher prices - at a time when inflation has already resulted in many goods and services being out of reach for most people in the country - there is also the real risk of raising the cost of doing business in the country.
This is a difficult period for Bangladesh, as has been acknowledged numerous times, and the current administration must continue to make very difficult decisions to try and steady our economy and once again bring some stability.
With that said, given how much Bangladesh’s business climate continues to be a deterrent for potential investors home and abroad, and how foreign direct investment (FDI) continues to be vital for the future health of this nation, it is imperative that we ensure that our tax policies do not contribute to further deterioration of our business climate, or indeed put even more unnecessary burden on the people.