Tax exemption to boost revenue collection: Finance Minister
Finance Minister AHM Mustafa Kamal has expressed hope that the deduction of tax rate in the proposed budget for fiscal 2021-22 will increase the revenue collection.
The minister expressed the hope at a post-budget virtual press conference for the fiscal 2021-22 on Friday noon.
Responding to a question on tax exemptions in the budget, he said, “We aim to simplify the law. We sincerely believe that if can simplify the law and involve tax payers in this work, then the revenue generation will be increased a lot.”
“Many countries of the world tried to increase revenue generation. Even the United States once had a 75 percent tax rate, which is no longer the case. Everyone tried to figure out whether to collect more taxes.”
He further said, “We think if we gradually reduce the rate of revenue, our collection will increase. Tax was slashed, we believe ‘we’ll be the winner’. The tax rate has been reduced and hopefully our revenue collection will increase further.”
The finance minister said, “Businessmen are talking about a business-friendly budget. The term business is flexible job, it cannot be fixed. People’s needs change every time. Changes come to businessmen to meet the demand. Change also comes to move them forward. So it can never be fixed.”
He said, “We have to see what our situation demands, what the whole world is doing. If the developed world lags behind, we will not be able to move forward. Because through the developed world but we are prosperous. That is what the US economy teaches us today, we are connected to each other.”
Finance Minister on Thursday placed a Tk 6,03,681 crore national budget for fiscal year 2021-22 (FY22) in the Jatiya Sangsad with a 7.2 percent GDP growth target attaching priority to the lives and livelihood of the country’s people in tandem with development amid the COVID-19 pandemic.