VAT system must be modernised to stop evasion: Finance adviser
“There is no doubt about the need for VAT. In many countries, VAT contributes far more to national income. In our country, however, VAT collection remains extremely low compared to GDP,” he said.
Finance Adviser Dr Salehuddin Ahmed said the country must improve its system so that there is no manipulation in VAT. He also urged the NBR to adopt measures that make tax payment easier for citizens.
"It is unfortunate that VAT often does not reach the government treasury. Yet wherever you go in the world, there is no escaping VAT," he said today while speaking as chief guest at an event organised at the Revenue Building in Agargaon to mark VAT Day.
He said that although there may be questions about other tariffs and para-tariffs, there is no question about VAT and income tax collection. "We must increase this," he said.
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He added that without higher VAT collection, the government cannot expand spending on social safety nets, education, healthcare, and project development.
Emphasising the need to make VAT management simple, modern, and automated, he said: "Many of us, even many of our relatives, look for shops that do not charge VAT and prefer to buy from there. This mindset must change."
"We must create a system where people no longer look for whether a shop charges VAT," he added.
Secretaries of various ministries, senior NBR officials, and business leaders attended the programme.
Speaking as chief guest at a separate seminar organised by the Social Development Foundation (SDF) at the Sonargaon Hotel in Dhaka, he said women are enterprising and prudent with money. "It is better to give money to women, as they spend more on family welfare. They must be helped to become entrepreneurs. If you give money to men, they tend to spend it," he said.
He said poverty is rising in the country, partly because even good projects are not implemented properly. "Projects must be implemented correctly. There are weaknesses in the law, corruption, and system complexity — all of which create problems," he said.
Calling it better to become an entrepreneur without taking loans, the finance adviser said: "It is better to become an entrepreneur on your own than with borrowed money."
Salehuddin Ahmed said property in cities is increasing, but it should be decentralised. "We do need cities, but villages must be made more beautiful and attractive. SDF must play a stronger role and expand its reach. We must contribute to the welfare and human development of the people," he said.
