Bangladesh Bank governor Ahsan H Mansur has claimed that Binimoy, the mobile financial services interoperability platform, was a shell company linked to Sajeeb Wazed Joy, son of ousted prime minister Sheikh Hasina.
Speaking at a discussion titled 鈥楥hallenges and Prospects of Digital Transactions: VAT Increase Perspective鈥�, organised by Prothom Alo in Dhaka on Wednesday, Mansur said the platform鈥檚 failure stemmed from placing MFS interoperability under the ICT ministry, where Joy served as an adviser to his mother.
He emphasised the need to make smartphones more affordable to expand MFS and internet banking, stating that increased digital transactions would naturally boost tax revenue.
Mansur stressed the urgency of fully digitising tax and duty payments, arguing that corruption in revenue collection cannot be reduced without an online system.
He also proposed capping VAT at 10 per cent from import to retail, calling the current 15 per cent rate too burdensome for consumers.
While major revenue reforms are unlikely in the short term, he said necessary overhauls would take three to four years.
鈥楾he current government may not have enough time, but we will begin the process,鈥� he added.
Addressing inflation concerns, Mansur dismissed claims that monetary policies were ineffective, insisting they are working to some extent.
He pointed out that even in developed countries, policies take 10 to 12 months to show results, expressing optimism for improvements by June.
On the banking sector, he disclosed low deposit growth, stating it should ideally be 14-16 per cent.
He also revealed that the government was exploring alternatives to the Letter of Credit (LC) system, with a feasibility study set for the next three months.
City Bank managing director Mashrur Arefin has alleged that a certain group has siphoned off bank funds, while Shuchona Foundation and Centre for Research and Information (CRI) have taken away money from the banks鈥� Corporate Social Responsibility funds.
The Centre for Research and Information is the research wing of the deposed Awami League, and was chaired by Sajeeb Wazed Joy, and trustee Radwan Mujib Siddiqi, son of Sheikh Rehana.
The Shuchona Foundation, chaired by Saima Wazed, daughter of Sheikh Hasina, focuses on financial support for individuals with mental and neurological disabilities, autism, and mental health issues.
The event was also attended by National Board of Revenue chairman Abdur Rahman Khan, Apex Footwear managing director Syed Nasim Manzur, Pran-RFL Group chairman and CEO Ahsan Khan Chowdhury, Prime Bank chairman Tanjil Chowdhury and other industry leaders.
During the discussion, business representatives urged the government to expand the tax net instead of raising tax rates.
NBR chairman Abdur Rahman Khan said that a major change would be introduced in the next budget, but businesses must ensure transparency by paying their due taxes.
The NBR chairman stated that the upcoming budget would not be ambitious. He mentioned that tax rates would be made reasonable, businesses would not be pressured, and the VAT rate might be reduced if necessary.