The government has taken initiatives to further enhance the capacity of the IMED to make faster implementation of the budget
Mentioning that a large portion of the country’s businessmen hailed the proposed budget for FY22, Planning Minister MA Mannan on Saturday said that businessmen and industrialists would be able to contribute more towards economic development through utilizing various budgetary facilities including tax measures.
“We’re getting suggestions from various quarters including experts and businessmen to make amendments in some areas of the proposed budget and the government always attaches importance to the wellbeing of people,” he said.
The planning minister said this while addressing the Centre for Policy Dialogue (CPD) Budget Dialogue 2021 as the chief guest held through a virtual platform.
Moderated by distinguished fellow of CPD Mustafizur Rahman, CPD Chairman Rehman Sobhan, Saber Hossain Chowdhury, MP, Barrister Rumin Farhana, MP, former Bangladesh Bank Governor Salehuddin Ahmed, FBCCI President Md Jashim Uddin, MCCI President Barrister Nihad Kabir, BASIS President Syed Almas Kabir, BGMEA Vice President Shahidullah Azim, labour leader Kalpana Akhter spoke, among others.
Executive Director of CPD Fahmida Khatun highlighted the observations of the CPD at the virtual program.
The Planning Minister said that the government has taken initiatives to further enhance the capacity of the Implementation, Monitoring and Evaluation Division (IMED) to make faster implementation of the budget.
For this the government is actively considering the setting up of IMED offices at the district level, he added.
Mannan also opined that the main reason behind almost 40% increase in inward remittance flow despite the COVID-19 pandemic was the 2% cash incentives.
He said if the VAT Act 2012 could have been implemented properly, then the revenue collection could have been raised to a big extent.
“But we could not do that. The businessmen actually do not pay VAT, rather it is being paid by the consumers,” Mannan said, adding that the matter is being highlighted in the country in a wrong way.
Mentioning that implementation of the budget is a big challenge, Prof Rehman Sobhan said that it is not the main thing how big the budget size is, but the main thing is to what extent the budgetary allocation is spent.
The government needs to ensure quality budget implementation and transparency. The concerned authorities should have to give special attention to this, he added.
FBCCI president Md Jashim Uddin said the proposed budget for FY22 has reduced the corporate tax rate by 2.5%.
But, on the other hand, the advance income tax (AIT) has been proposed to be 7% instead of the existing 5%.
In this regard, he proposed withdrawing the provision for advance income tax.
MCCI President Barrister Nihad Kabir suggested further widening the tax net instead of increasing the AIT adding that the NBR could further widen the tax net through optimum use of ICT.
The speakers at the virtual dialogue put emphasis on further widening the coverage of the social safety nets and to put more importance to the health sector.