Terming the VAT (value added tax) as regressive, rights groups alleged that the government has been embarking on this with IMF (International Monetary Fund) prescriptions.
There should be more emphasis given on direct tax instead of VAT, which is indirect tax, they said yesterday while addressing a press conference at the Jatiya Press Club. Twenty-five rights based organizations, including EquityBD organized the press conference.
Monowar Mostafa of Development Synergy Institute said the state cannot ignore the principle of ability of payment of its citizen. VAT defeats this principle which is against the sense of social democracy. Asgar Ali Sabri Action Aid Bangladesh said that governments hardly follow a democratic and inclusive process for preparation of budget and setting tax principles.
Aminur Rasul Babul of Upkuliya NGO Jote said that due to the new VAT law savings of poor families will be eroded and then the investment toward education and health will be hampered. Badrul Alam of Bangladesh Krishok Federation said that majority of the farmers will be loser due to the new VAT law. Rezaul Karim Chowdhury moderated the press conference.