- The revenue collection system heavily depends on indirect taxes like sales taxes and VAT
- Previous governments increased indirect taxes rather than fixing tax system issues
- Indirect taxes negatively impact small to medium businesses and economically disadvantaged groups
- The government has raised VAT to 15% on various goods and services including restaurants and clothing
- Despite assurances, essential goods prices may still be affected by VAT increases
- Bangladesh faces high inflation, severely affecting those near the poverty line
- The government needs to consider the financial impact of VAT changes on vulnerable populations
- Businesses struggle with high inflation and difficulties in operations
- There is a need for careful revision of VAT rates considering current economic challenges
- Ideally, a robust tax system would be supported by public trust and willingness to pay taxes
- The interim government should work on restoring public trust in the tax system
Source: dhakatribune.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
