Muhith plans 3 percentage point rise in revenue growth in 4yrs
Syed Samiul Basher
Finance Minister AMA Muhith on Tuesday said that the revenue collection will see a 3 to 4 percentage point increase in next four years.
To reach the goal, the minister said the government would bring 50% taxable people under tax net, with various tax mechanisms.
‘The primary goal of the government was to increase the size of the national budget because without it we would fail to provide services to people. Currently, the revenue collection as percentage of GDP stands nearly at 11%, which is very low in comparison with other countries,’ he said.
It took 27 years to reach the revenue target at 8% of GDP from 5%, while it took six years to increase the revenue from 8% of GDP to 11%. It will increase 3 to 4 percentage point in next four years under this government’s tenure, he added.
Muhith disclosed the target at the 36th NBR-FBCCI consultative committee meeting at a hotel in Dhaka.
‘In 2009, we expected to bring 50% people under tax net that is now 22% to 24% in Nepal and 28% to 32% in India. We might reach the target if initiatives and efforts are on’ the minister said.
The minister asked the businesses to be prepared as the income tax and Value Added Tax (VAT) will be the major source of revenue collection in coming days.
The minister also said the government is planning to change the ‘surcharge on wealth’ to ‘property tax’ from next fiscal, but the neighboring country (India) has just recently abolished the tax mechanism.
‘We will have to know why the tax mechanism was cancelled by them. The NBR have to study and work in this regard,’ he said.
In regards to tobacco tax, Muhith said there will be no multiple tax structure for tobacco products from next fiscal.
‘Earlier, we used to collect tax from tobacco sector by meeting the tobacco businesses and through negotiations with them. The tax structure will now be finalized in line with the global practices’ he said.
Muhith also stressed on for a strong movement like the initiatives by Adhunik, country’s first and leading anti tobacco organization against the tobacco as it is harmful for health.