Dhaka, July 13 – Prime Minister Sheikh Hasina on Thursday said the suspension of the uniform 15 percent VAT will bring down the revenue collection by Tk 20,000 crore in the current fiscal year.
“The postponement of the VAT law will result in the reduction of Tk 20,000 crore of the targeted revenue as we’ve formulated our budget considering the new rate,” she said.The Prime Minister was delivering her winding-up speech in Parliament.
While formulating the budget, the government calculated everything taking into consideration the new VAT law and the revenue that will come from the mobile companies, Sheikh Hasina said.
She, however, said the government will have to do something to recoup with the revenue loss. “We’ve to do something… we’ve to take loan from banks or cut short our development budget,” she said.
Apprehending that there might be devastating flood in the country this year, the Prime Minister said, “For this, we’re importing foodgrains from abroad and stockpiling those so that if we can face any kind of calamities. The country’s people mustn’t suffer.”
She made it clear that the government has taken all the steps for distributing relief materials among the victims of natural calamities. “We’ve taken measures for the rehabilitation of the affected people.”
Hasina said each and every official concerned has been assigned, and everyone knows his/her duty. “Everyone is performing their duties sincerely.”
She also said the leaders and workers of Awami League are doing their respective jobs.
Reiterating her government’s ‘zero-tolerance’ stance on militancy and terrorism, the Prime Minister said there will be no place of militancy in Bangladesh.
She said the main aim of the government is to contain corruption, curb terrorism and ensure people’s peace and security.
Hasina hoped that the poverty rate will be reduced following the implementation of the new budget. “Our aim is to make the country a middle-income one by 2021 and a developed one by 2041. We believe that we can do that.”
Mentioning that the country is marching forward, she said it will continue its journey towards prosperity.
While placing his budget in Parliament on June 1, Finance Minister AMA Muhith proposed imposing the flat 15 percent VAT rate, which drew a widespread criticism from both the ruling and opposition parties in the House.
Later, the Prime Minister, during her speech on the proposed budget, requested the Finance Minister to suspend the law for a few years. – UNB
