MPs rip at Muhith over excise duty, savings certificates

The government and the opposition MPs alike have voiced their dismay at proposed cut in interest rates on savings certificates and increase in excise duties on bank deposits.

Parliament Correspondentbdnews24.com
Published : 14 June 2017, 02:21 PM
Updated : 14 June 2017, 02:21 PM

The MPs came down on Finance Minister AMA Muhith in the parliament on Wednesday and asked him to make decisions cautiously keeping the general elections in mind.

Ruling Awami League MP Tanvir Imam suggested creating substitute mediums of investments before cutting down interest rates on savings certificates.

“We need to value our potential voters of 2018 polls,” said Tanvir, son of prime minister’s adviser HT Imam.

On Jun 2, a day after presenting the national budget for FY2017-18, Muhith announced the interest rate on savings certificates would be lowered by two percent.

The decision will come into force within two months.

Another Awami League MP, Habib-e-Millat, suggested realising taxes from higher income group, not those with low income.

“The minister (Muhith) is bound to explain how the decisions will benefit people. Responsibilities cannot be ignored with words like ‘rubbish’ or ‘shut up’,” he said.

Highlighting the deficit in the Tk 4 trillion budget, opposition Jatiya Party MP Nurul Islam Milon doubted that it could be implemented.

“NBR (National Board of Revenue) lacks the capacity to collect such a massive amount of revenues. The finance minister is putting all the pressure on the people to make up for the deficits,” he said.

“People are not happy with the budget as reported by the media. The positive sides of the budget are hardly being noticed because of these 15 percent VAT and increased excise duties.”

The budget, which was Muhith’s 11th, proposes to increase excise duty to Tk 800 from Tk 500 on bank accounts with a balance of Tk 100,000 or more.

“Excise duties are imposed on harmful items. Why should duty be levied on my legally earned money?” asked Jatiya Party MP Yahya Chowdhury.

A day after presenting the budget, Muhith said people with Tk 100,000 in their bank accounts were well-off and they could afford to pay the tax.

Referring to the remark, Yahya said: “By calling people with a savings of Tk 100,000 wealthy, the minister has made fun of them.”