Don't make purchases if you don't want to give tax: Planning minister

Planning Minister MA Mannan has said individuals should not buy goods if they are unwilling to pay value-added tax (VAT), but they have to pay it when they make purchases.

During a post-budget meeting in the capital's Motijheel area on Saturday (3 June), the minister said, "Some people are unwilling to accept VAT. But I would say VAT is a good tax and it is possible to gain huge revenue if it is collected properly."

The minister said there is already some exemption in VAT for certain food items, including rice and lentils, for low-income people.

The meeting, titled "Bangladesh from Vulnerability to Resilience and Rapid Inclusive Development," was organised by the Metropolitan Chamber of Commerce and Industry (MCCI) and the Policy Research Institute (PRI).

However, other speakers, present at the meeting, criticised the move of setting the minimum tax, terming it as contradictory to the tax policy. 

Speaking at the meeting, PRI Vice-Chairman Dr Sadiq Ahmed said the government cannot ask people with non-taxable income for money as if they were seeking donation. 

Addressing their concern, the planning minister said, "The move will make people reorient towards tax which is very important."

However, he said this needs to be introduced through a trial run.

He also referred to former British prime minister Margaret Thatcher's move to impose tax on children's dairy foods which drew huge criticism with people mocking her saying, "Thatcher Thatcher, milk snatcher."

"Though she remains one of the most powerful and revered prime ministers in the UK's history," he added.