- Finance Adviser Dr Salehuddin Ahmed raised VAT to cover costs related to the 2024 uprising victims’ treatment.
- Each critically injured student received Tk 3.5 million, and over Tk 5.0 billion was spent on replacing 300 burnt police vehicles.
- The government lowered VAT on some products after the hike.
- The economy is gradually improving, but challenges remain.
- Bangladesh has a high resource gap, requiring assistance from lenders like the IMF, WB, and ADB.
- Lenders require conditions like raising VAT, which has caused problems.
- The ADB gave $500 million in December 2024, the WB will provide $500 million in June, and the IMF will give $2.0 billion in March or June.
- The increased VAT will add Tk 120 billion to state coffers.
- The government corrects mistakes related to VAT hikes.
- The government cannot make decisions based on popular demands.
- Economists advocate for both increased revenue and lower VAT and taxes.
- People are regaining confidence, and expatriates are sending money through official channels.
- The current account, financial account, and export growth have turned positive, and the macroeconomic situation has stabilized.
Source: today.thefinancialexpress.com.bd
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.
