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DHAKA, Jan 7, 2025 (BSS) - Finance Adviser Dr Salehuddin Ahmed today categorically said that the government would not change any duty structure until the ensuing Holy Month of Ramadan comes to an end.

“If we change the duty structure, then there might be crisis to some extent. If we also change the policy structure, then there might be some problem. But, message has already been given that until the Ramadan ends, there will be no changes in the structure (duty structure),” he added.

The finance adviser was responding to the queries of reporters after chairing the 2nd meeting of the Advisers’ Council Committee on Government Purchase in this year held at the Cabinet Division Conference Room at Bangladesh Secretariat today.

When asked about the possible changes in the rates of VAT and income tax, he said that the government would rationalize the income tax structure.

“Our goal is that whoever is capable enough will have to pay tax … if a certain person has capability to pay tax, then he or she will have to pay tax (as per rules) and thus the capable persons couldn’t evade tax. We need to enhance our tax collection alongside widening the tax net,” he added.

The finance adviser noted that perhaps it is not possible right at this moment to widen the tax net to a large extent, but ensuring compliance is the most important thing.

About the government’s move for widening the tax net, the adviser said there are still many capable businessmen in the country who do not have VAT registration and TIN certificates.

For bringing those people under the tax net, Dr Salehuddin said he has already asked the NBR to make a quick survey to identify the potential tax payers and VAT payers.

Acknowledging that there is still presence of the extortionists in the supply chain to some extent apart from the middlemen, he sought cooperation from all to address the issue.

The finance adviser said that the government is encouraging those alternate business houses in promoting their business operations who did not get the chance in the last 15 years due to lack of level playing field.

“We’re now suffering due to the policy failure of the previous regime,” he said, adding that had the interim government could not have taken quick actions and proactive policies, then the foreign currency reserves would not have reached $22 billion apart from clearing arrears worth $4.5 billon.

Replying to another question on inflation, he said that the general point to point inflation has declined and it would be better if the trend improves further.

About the rising trend of price hike in rice, he said that the price of rice in one specific item has increased, but the prices of the rest of the items on the whole have not increased.

He said the reason for this is that the domestic harvest is yet to finish fully side by side to some extent due to the supply chain.

“So, we’re considering the matter so that the price of rice does not increase anymore,” the adviser said adding that they have also discussed it with the Ministry of Food and the concerned adviser.

Dr Salehuddin said that they have also suggested the Ministry of Food to import rice from anywhere they can, if necessary making a buffer-stock so that the others excepting the government become more restraint.

“If necessary special OMS can be rolled out,” he added.
 
Regarding the government’s preparations on the essential items ahead of the Holy Month of Ramadan, he said that lentil has been imported and procured while the supply of soybean oil has also become stable and tolerable. “If necessary, we can import those items again.”

So, the common people including the middle class people could avail those and there is no such crisis regarding availability of these items, he added.

The finance adviser said that the government should have to strengthen further the market monitoring as it would not work only with the operations of the Directorate of National Consumer Rights Protection (DNCRP), especially the wholesalers and retailers should have to be brought under strict monitoring.

He said that the government’s main principle is that the margin between the production cost at farmers’ level and the selling price at the consumer level does not become so big.