BNP calls on the government to explore alternative revenue sources instead of increasing VAT
Budget cuts in local government could result in savings of at least 50,000 crore.
The Bangladesh Nationalist Party (BNP) has urged the interim government to reduce unnecessary expenses and explore alternative revenue sources instead of raising taxes in the current fragile economic climate.
Speaking at a press conference on Saturday at the BNP Chairperson's office in Gulshan, BNP Secretary General Mirza Fakhrul Islam Alamgir offered this advice, expressing concerns about the financial burden on the general public.
Mirza Fakhrul criticized the economic mismanagement under the Awami League’s tenure, which he said has led to a deteriorating financial situation characterized by corruption and inefficiency. He warned that raising VAT rates would only exacerbate the challenges faced by ordinary citizens.
“The government must prioritize reducing unnecessary expenses. By reviewing the development budget and eliminating non-essential and unjustifiable projects, it could cut expenses by around 20%, saving up to 60,000 crore taka,” he said. Additionally, he proposed reducing costs by cutting local government budgets and subsidies, which could save at least 50,000 crore taka.
Mirza Fakhrul also called for halting funding for corrupt mega-projects and reassessing budget allocations to autonomous institutions, suggesting these measures could generate significant savings.
On revenue generation, he advised broadening the VAT base instead of increasing rates. He proposed utilizing the assets of corrupt individuals—lawfully seized properties and bank accounts—to bolster government revenue. He also urged efforts to recover black money, looted funds from banks, and non-performing loans, as well as more active steps to secure foreign loans and donations.
The BNP leader emphasized the importance of addressing loan defaults, particularly by oligarchs, and taking measures to repatriate money siphoned abroad. He also called for strong action against tax evaders who benefited from exemptions during the Awami League’s rule.
To enhance revenue administration, Mirza Fakhrul stressed the need to address corruption, inefficiency, and mismanagement within the VAT and tax collection systems, ensuring greater transparency and accountability.
Lastly, he highlighted the importance of revitalizing the agriculture sector to support economic recovery and stability.
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