Finance adviser Salehuddin Ahmed on Saturday said that the main principle of the interim government should to prevent wastage in public expenditure for tackling the current financial crisis.聽
Under the present context, the interim government needed lots of funds, he said while addressing a discussion in the capital on the changes brought about through the Finance Act 2024 regarding direct taxation.
Bangladesh Civil Service (Taxation) Association organised the programme at the main National Board of Revenue office.
The finance adviser said that they had seen a lot of public programmes in the past, indicating the wastage of public funds by the previous political regime ousted on August 5 in the face of a student-led mass uprising.
He also observed that the current revenue mobilisation target would not be reduced so that the budget deficit could be met with internal resources mostly.
Highlighting the need of foreign funds, the finance adviser said that the loan would be taken for implementing projects best serving the interest of the country.
He noted that over reliance on foreign loans for maintaining the deficit budgets over the years had resulted in the loan burden聽 on the nation.
The finance adviser also pointed out that they should not be dependent on foreign loans solely.
Salehuddin Ahmed recalled that once he vetoed a hard term-loan during his tenure as the Bangladesh Bank governor despite then finance minister M Saifur Rahman recommended it.
The finance adviser asked the tax officials to collect tax in such a manner so that taxpayers did not feel discomfort to deal with them.
Calling the present tax system as rigorous, the finance adviser remarked that emphasis should be given on direct taxes rather than indirect taxes.
He criticised the current system鈥檚 too much reliance on Value Added Tax in overall revenue generation, saying that both a millionaire and a poor person paid the same amount of tax for buying a loaf of bread.
鈥榃e don鈥檛 want this,鈥� he said.
He also advised the tax officials to make taxation rules and regulations friendly towards people and businesses to ensure transparency and accountability.聽
Referring to a US delegation currently visiting the capital with the objective to enhance bilateral cooperation in various sectors, the adviser said that any businesses, foreign or local, look into the tax rules, regulations and documents at first before venturing further regarding starting businesses.
Calling the suspension of undisclosed money legalising provision as the first reform initiative in the revenue side, the finance adviser mentioned that reform in the banking sector had also started.
Reforms in the other sectors, including health and social welfare, would take some time, he added.
