Muhith hints to change stance on VAT law, excise duty, JaPa MP demands his resignation

Finance Minister AMA Muhith has said the decision on the changes in new VAT law implementation and the amount of excise duty on bank deposits will be announced on June 28. The minister made the remarks after a programme at the Finance Ministry auditorium on Tuesday. Prime Minister Sheikh Hasina on Monday asked the finance minister to postpone implementing the controversial new value-added tax law set to be effective from July 1. Asked about the meeting, Muhith said a meeting was held regarding the implementation of new VAT law. He, however, declined to disclose the decision taken at the meeting. “It is not appropriate to disclose anything regarding the budget when the budget session is going on at the parliament,” he added. According to Finance Ministry officials, the government has planned to postpone implementation of the new value-added tax law from July 1 because of the negative impact on people’s life. The VAT Act 2012 is going to introduce a uniform 15% VAT rate which many believe will raise the cost of living. On June 1, the finance minister proposed the national budget for the fiscal year 2017-2018. A 60% increase in excise duties on bank accounts was part of the budget.

JaPa MP demands Muhith's resignation at Jatiya Sangsad

Meanwhile, Jatiya Party lawmaker Ziauddin Ahmed Bablu demanded Muhith's resignation for "failing to rein in irregularities and loan scam of the state-owned banks" during the parliament session on Monday. The minister was not on the floor at the time, reports Bangla Tribune. At the same time, Bablu has also demanded criminal charges to be brought against the minister for his proposed recapitalisation programme for the same banks, using state exchequer’s money.