Complex taxes breed corruption, economy distressed by lack of growth during AL regime: Selim Jahan

Tax systems are often made intentionally complex to facilitate corruption and the economy is currently in distress because qualitative development did not occur during the ousted Awami League government's tenure, Economist Selim Jahan said today (11 April). 

Speaking at a pre-budget shadow parliament organised by Debate for Democracy, Selim emphasised that every budget requires a clear developmental philosophy and must reflect the genuine expectations of the public. 

"While the previous government focused on infrastructural expansion, the lack of qualitative progress has left the economy in a vulnerable state," he said at the session titled "Increasing revenue collection should be the main strategy of the next budget for economic protection." 

Selim, also a professorial fellow at the BRAC Institute of Governance and Development, mentioned that ordinary citizens primarily seek comfort and a sense of security in their economic lives, yet this year's budget is being drafted under exceptionally difficult circumstances. 

Beyond the local challenges, he says, the impact of the Middle East conflict and a heavy burden of foreign debt are weighing on the nation. 

According to him, currently, the government must allocate 25% of its total expenditure toward repaying the interest and principal of foreign loans. 

Furthermore, rising subsidies in sectors such as energy, exports, and social safety nets are driving up costs while revenues remain stagnant, resulting in a persistent budget deficit, said the economist. 

Selim also noted that there is a significant reluctance to pay taxes among the upper class, and the government often hesitates to impose taxes on them because the administration itself is largely represented by businessmen and wealthy individuals. 

During the event, Hasan Ahmed Chowdhury Kiron, chairman of Debate for Democracy, stated that the current government has inherited a shattered and fragile economy. 

He said the upcoming budget is being formulated on the ruins of economic destruction left by the previous administration. 

Kiron pointed out that many projects during the Awami League era were significantly overvalued, estimating that 40% of the expenditures were fraudulent. 

He argued that the financial "bleeding" caused by these overvalued projects must be stopped to ensure financial security, regardless of any increase in revenue. 

He called for a sustainable, cautious, and business-friendly budget that avoids increasing public suffering or fueling inflation. 

He further stressed creating a favourable environment for legitimate businessmen, ensuring they are not victims of political vendettas. 

While those who committed crimes must face legal consequences, Kiron suggested that bank accounts should not be closed indiscriminately, and entrepreneurs willing to contribute to the economy should be given the opportunity to function effectively.