National Budget FY 2021-2022 Finance Minister’s Jugglery (Vhanumoti’s Game)
Dr. Zafrullah Chowdhury :
Everyone enjoys watching jugglery at street junction, throws money with excitement; but comes back to reality when the show ends and returns home with heavy heart.
People of Indian subcontinent have no escape from Lord Mekale’s dream of transforming them as “Black Englishman” even in 250 years. Our finance minister with a black suitcase at hand enters the National Parliament accompanying our Prime Minister and reads aloud the traditional budget paper for a long time and finishes reading with applause. Budget allocation for different section depends on the minister’s own perception of social categorization. But, has the concerned minister consulted about the budget of this fiscal year 2021-2022 with the senior leaders of his party, such as – Mr. Tofayel Ahmed, Mr. Amir Hossain Amu, Ms. Motia Chowdhury, Dr. abdur Razzak, Mr. Nuh lenin, Mr. Monayem Sarkar, Advocate S.M. Rezaul Karim, Dr. Toufik Elahi Chowdhury, Dr. Sayed Modasser Ali, Dr. S.A. Malek before presenting it to the nation? What wrong would happen to the Constitution if the proposed budget is circulated for seven days to the mass people giving them chance to read and review it? The final budget would be worthier if the minister presented it considering the opinion and proposal of the common people. Hope, the concept of traditional budget would end; good governance and accountability would begin. Honourable Prime Minister, please consider my proposal.
I. Occupation and the social status of the Finance Minister
The present finance minister of Bangladesh is a qualified chartered accountant. Basically, he resolves the accounts of the great business personnel and corporate houses. As a result, he intends to satisfy the businessman and upper middle class in the budget of this fiscal year. Isn’t it revealing his intention to help the corporate showing the ways of VAT, TAX evasion when he will retire from government duties or will join the opposite party? For his profession and social status, he has not missed any chance to please the bureaucrats.
The bureaucrats direct the government of this country. Secretaries dominate the elected politicians and run the districts of Bangladesh from the capital city – Dhaka. In the running year, 56 thousand and 9 hundred crore of taka was spent for bureaucrats. Interest free loan of 30 lac taka is sanctioned for them to buy cars and 50 thousand taka monthly for car maintenance. 65% of the government officers cannot use these cars bought with loan, rather use them as Uber for extra income. Even, they use more than one government car, one for them and another for their family member. Really, Seleucus!
II. Some good decisions: beneficial for middle class, upper class and businessman
1. Firstly: Tax Identification Number (TIN) is mandatory for buying Sanchaoypotro (national savings scheme) above 2 lac taka, approving house building plan, registering co-coperative society, participating into postal savings, buying motor bike, car, land, property, flat/apartment etc. New rules should be implemented that every adult has to have TIN whether his/her income is taxable or not, or even he/she is unemployed. For this purpose, annual TIN registration fee should be fixed at 200 taka only. The owners of house and cars have to pay 200 taka for TIN fee to their house maid, rickshaw-van puller, three wheeler and motor car driver. In this way, around 2 crores of new people will be registered under income tax; and who will be able to pay income tax within the next five years. From this minimum fees of 200 taka, the government could earn 200 tk X 2 crore tk = 400 crore taka annually. This method will help if unemployment allowance is introduced in future.
2. Presently, the number of TIN in the country is 61 lac but the number of income tax return submission is 25.43 lac only.
Though Bangladesh has stepped into low middle income country (LDC graduate) from low income country (LDC), her outlook has not changed yet. People’s income increases but the mentality of the government remains unchanged. Harassment, lobbing and corruption has increases enormously. Consequently, common people do not want register for TIN for the fear of being harassed. It would be logical to increase personal taxable income limit from 3 lac to 5 lac. At the same time, personal income tax should not exceed 20% of one’s income.
Table-1: Proposed income tax in the national budget of 2021-2022 fiscal year Vs expected rational income tax of Common People
Easy way to increase revenue
Those people who have been residing in foreign countries especially in United State of America sell their parental property and transfer those money in their residing country by hundi. Most of the people want to transfer their money in legal way to Europe, Africa, Canada, and Australia by giving minimum tax as fixed by the government. But there is no system in this matter. So your honor is requested to fix 10% tax to transfer their money in legal way.
Chart 2: Surcharge on net property of individual tax payer
3) Tax free decision up to 70 lakh for female entrepreneur is a good incentive. It is also a fair approach to give tax holiday facilities for ten years to production of house hold, residential tools and equipment for middle class of the country.
4) But execution of VAT is not right decision. VAT is main source of revenue in 38% while tax contribute 31.8%. So steps to be taken to increase revenue by fixing 25% in both items. Tax rebate to 3rd gender employee will be a good step and their salary will be 100% tax free. Fine at simple interest rate would be imposed if VAT is not paid timely.
5) All vat, tax and Advanced Income tax would be exempted on medical equipment and accessories. In all items single rate of tax would be imposed. In that case harassment and corruption would be reduced. Withdrawal of all vat, tax, advanced income tax, Agency Tax etc. on medical equipment and accessories (that is Analyzer, Cath lab, ECG, Echocardiogram, Defibrillator, ventilator, cardiac monitor, citiapparatus, hospital bed, blood bank, syringe pump, surgical sterile gloves, and biosafety cabinet) would be appreciable. Business community demanded to withdraw Advanced Income tax on all imported items.
(Dr. Zafrullah Chowdhury is Trustee Gonoshasthaya Kendra).
(To be continued)
