Excise duty, uniform VAT rate cause furore among MPs

Lawmakers from both sides in parliament continued Wednesday criticism of the proposed budget 2017-18 particularly for proposing excise duty on bank-account balance and Tk 20 billion allocation for feeding scam-hit state-owned banks (SoBs).
"The bank interest rates on deposit are quite low. Furthermore, the government is going to impose excise duty on bank balance, which is not justified," President of the Workers Party and Civil Aviation and Tourism Minister Rashed Khan Menon said in his budget discussion.
He noted the finance minister said he would change the name of excise duty on bank-account balance, but what use changing name only. Whatever the name it has similar effect.
The chief of the leftwing party in the Awami League-led coalition deplored that the finance minister is going easy on loan defaulters but taking tough measures on lower-and lower-middle classes.
He feared the new excise duty on bank balance will drive lower-and lower-middle-class people to the capital market and they would again lose their money.
Mr Menon urged Prime Minister Sheikh Hasina to intervene in this matter.
Former forest and environment minister Hasan Mahmud of Chittagong-7 urged the finance minister to withdraw the proposed excise duty on bank-account balance.
He said the government needs revenue, but to this effect, revenue net should be cast wide.
"Size of the budget has increased five times during Awami League government but the number of taxpayers increased only twofold," he said.
Jatiya Party MP from Mymensingh-8 Fakhrul Islam said the finance minister proposed excise duty on bank-account balance to spend public money on recapitalisation of scam-hit banks. "This is unfair."
Ruling-party lawmaker from Barguna-1 Dhirendra Debnath Shambhu said the government would earn only Tk 2.0 billion from proposed excise duty. The opposition lawmakers are criticising budget for this petty money. The finance minister can rethink it.
Commerce Minister Tofail Ahmed admitted to some mishaps having happened in the state-owned banks. These were not expected.
"We should take decision on this matter on the basis reality," he told the House.
The Awami League stalwart, however, extended his support to the beleaguered finance minister, AMA Muhith.
Reserved-seat MP Wasika Ayesha Khan urged the finance minister to withdraw excise duty on bank transactions up to Tk 100,000.
Independent MP Ushatan Talukder stated that banks and financial sectors are under big threat. There was not any concrete direction on the reform of banks and financial sector.
He did not find any logic in extracting money from common people through VAT and refilling it in scam-hit banks.
He also urged the finance minister to withdraw proposed excise duty.
Md Rustam Ali Farazi of Pirojpur-3 urged the government to go tough against loan defaulters and bring back the money so that burden on the poor, lower-and lower-income groups of people eases.
He also called for withdrawal of bank excise duty and taking necessary actions against money laundering.
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Source: The Financial Express


 

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