Tax measures to help institutionalise corruption: TIB

Transparency International Bangladesh says tax measures and other budgetary proposals for the fiscal year 2017-18 will “help institutionalise corruption”.

In a statement yesterday, the TIB said the government's move to recapitalise the state-owned banks with Tk 2,000 crore, beset by corruption scandals, would “nurture and encourage corruption in a way.

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“Not only that, it is an evil initiative to institutionalise culture of looting money and default loan in the banking sector, and the initiative was taken through people's money,” TIB Executive Director Iftekharuzzaman was quoted as saying in the statement.

He also said imposing additional burden of tax on poor and middle-income people through the proposed national budget was “discriminatory”, and such way of tax collection could not be a sustainable way for the country's revenue growth.

“The government's revenue authority has become dependent on Value Added Tax (VAT) as it could not extend its income tax collection. The poor and middle-income people will ultimately have to bear the burden of VAT which will create inflation, thereby they will have to suffer,” he said.

Iftekharuzzaman urged the government to “avoid the corruption-friendly path” and implement a “people-friendly revenue policy”.

TIB also voiced strong protest against the “continuation of the scope for whitening black money” in the budget. It also criticised inadequate allocation for Climate Change Trust Fund and imposition of 10 percent tax on the import of solar panels, added the statement.