The tax system in the country has deliberately been made intricate to facilitate corruption, according to economist Prof Selim Jahan. He emphasized the need for simplifying the tax structure, stating that taxpayers are more hesitant due to the complexity rather than the actual taxation. This reluctance is particularly evident among the wealthier individuals.
Jahan stressed the importance of aligning every budget with a clear development philosophy and the aspirations of common citizens. While acknowledging the expansion of infrastructure under the Awami League-led government, he highlighted the lack of qualitative advancements leading to economic instability.
Addressing the challenges surrounding the upcoming national budget, Jahan highlighted the economic strains faced by Bangladesh. These challenges include global uncertainties, such as tensions in the Middle East, and the country’s increasing external debt burden. Approximately 25 percent of government expenditure is currently directed towards servicing foreign debt, comprising both interest and principal payments.
Moreover, Jahan pointed out the escalating subsidy pressures in various sectors like energy, exports, and social protection. These pressures are contributing to a rise in public spending without a proportional increase in revenue, resulting in persistent budget deficits.
Critiquing the government’s tax policies, Jahan mentioned a reluctance to impose taxes on the wealthy due to their significant representation within the state structure.
During the event, Hasan Ahmed Chowdhury Kiron, chairman of Debate for Democracy, expressed concerns about the fragile and disrupted economy inherited by the current government. He alleged that many projects initiated during the previous administration were excessively inflated, with nearly 40 percent of project expenditures being deemed fictitious. Kiron urged the government to address such leakages to ensure financial stability.
Kiron advocated for a budget that is favorable to the people and businesses, emphasizing the importance of avoiding inflation and minimizing the burden on low- and middle-income groups.
