The ratio of tax to gross domestic product (GDP) will be increased once the tax exemptions are gradually reduced, said National Board of Revenue (NBR) official Pradyut Kumar Sarkar.
“Tax exemptions in various sectors have helped the country develop economically and we have gotten good results from this facility in the last two decades,” said the NBR official during a press briefing organised on the occasion of the upcoming revenue conference.
“Our GDP is now $470 billion. The government has provided tax exemptions in many sectors, including the agriculture sector, trade sector, and more. The public sacrificed [their hard earned money] due to these exemptions, but for better economic development and industrial development,” he added.
“The government will continue to provide this facility to sectors that still need it. However, for sectors that have gotten a strong footing already and can run without tax exemptions the number of incentives might be gradually decreased.” Pradyut Kumar Sarkar said and added that this in turn will increase the tax-GDP ratio.
Another NBR official, Masud Sadiq said that the NBR is on the right track to increase revenue as per the conditions imposed by the International Monetary Fund (IMF) while providing a loan.
“However, tax restructuring is a continuous process. It is done every year while fixing the budget, irrespective of getting IMF loan,” he added.
About the revenue conference, NBR Chairman Abu Hena Md Rahmatul Muneem said that it will be held on 5 and 6 February at the Bangabandhu International Conference Centre.
It is scheduled to be inaugurated by the prime minister, who will also inaugurate the new building of the NBR on the same day.
There will be a total of three seminars on VAT, customs and income tax. In addition to seminars, there will be information booths on these issues. People will be able to know more about VAT, customs and income tax. At the same time awareness about online services will also increase, hopes the NBR chairman.