Imposing only 15% tax to whiten money unacceptable when highest tax on legitimate income is 30%: Atiur Rahman
At a discussion titled ‘Budget Reaction Session’, organised by private research organisation Unnayan Shamannay, he argued that such policies send the wrong message regarding the government's stance against corruption.
The imposition of a 15% tax to legalise black money is morally unacceptable, given that the highest tax on legitimate income is 30%, said former Bangladesh Bank governor Atiur Rahman.
At a discussion titled 'Budget Reaction Session', organised by private research organisation Unnayan Shamannay, he argued that such policies send the wrong message regarding the government's stance against corruption.
Rahman also emphasised reconsidering the tax on mobile and internet usage and suggested increasing the tax threshold considering the income pressures on most people due to inflation.
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He also said, "The National Board of Revenue is heavily reliant on indirect taxes, which account for 62% of their target. They need to enhance direct tax collection.
"Instead of imposing additional tax burdens on those already paying taxes, priority should be given to bringing in new taxpayers. This would require improving the board's capacity and digitising the tax collection framework."
Rahman pointed out that achieving a 6.75% growth target amid the current investment drought is challenging.
"To strengthen growth, reliance should be primarily on government spending. Additionally, if extra spending pressure is avoided, the budget deficit could be reduced, decreasing the dependence on domestic bank loans," he added.
The discussion also included Faruq Mainuddin, vice chairperson of BRAC Bank's board of directors, Khandaker Sakhawat Ali, visiting fellow at BRAC Institute of Governance and Development (BIGD), and Rumana Haque, professor of the Economics department at Dhaka University.
