Minister Inu wants no excise duty on bank accounts with Tk 500,000 or less

Information Minister Hasanul Haq Inu has opposed excise duty on bank accounts with balance up to Tk 500,000.

Joining the general discussion on the proposed budget for 2017-18 fiscal in parliament on Thursday, he also called for delaying the implementation of the VAT law until next year.

“Bank accounts with Tk 500,000 should be kept outside the purview of excise duty. This will keep the middle and lower class people happy,” he said.

Finance Minister AMA Muhith has been facing harsh criticism over the proposed budget, which was presented on June 1, from colleagues from both ruling Awami League and opposition Jatiya Party in parliament.

The budget drew criticism due to a proposed increased excise duty on bank accounts with at least Tk 100,000 and a uniform VAT of 15 percent.

Under pressure, Muhith  hinted at altering the excise duty rates. Now Inu, chief of a JaSaD faction that is an ally of the government, has joined the chorus by saying bank accounts with Tk 500,000 should be free of excise duty.

Regarding the VAT law, Inu said, “I don’t agree with everything that has been said about VAT in an uncontrolled manner. Personally, I don’t like the VAT system. It treats and charges the rich and poor similiarly but it hurts the poor.

“That’s why wr shpould get rid of the VAT system and consider implementing the Goods and Sales Tax or GST system which is used in the modern world.”

"The major weakness of our economy is dependence on VAT. We need to overcome this weakness. To do that, a new corporate tax law is needed. Progressive tax policy should be initiated. And if the system is digitalised, tax evasion and fraud would be caught easily.”

The information minister, however, said, “But those who are criticising the VAT law should also remember that our prime minister have made hundreds of essentials VAT free.”

Inu proposed postponing the VAT law and implement it from next year (2018-19 fiscal) since it has ‘created a lot of confusion’.

“If the confusion cannot be cleared up, then the new VAT law should be postponed.”

Though he said the proposed budget had many weaknesses, Inu also criticised those who have come down hard on Muhith since  the proposed budget was tabled.

“First you will call him a nice, successful and strong finance minister and then you’ll say he’s a failed finance minister – this is wrong. The country’s economy is successful, our finance minister is successful too.”

He hoped the prime minister would keep the middle class happy by reconsidering the excise duty and the interest rate of the savings bonds.

Inu on Thursday also demanded withdrawal of the proposed 15 percent VAT on newspapers.

“This 15 perceny VAT on the newspaper industry will impede the development of mass media. I’m urging the prime minister to ask the finance minister to withdraw this proposed VAT on newspapers,” said the minister.