Corporate tax may be cut
Finance Minister AHM Mustafa Kamal yesterday indicated that the federal government may consider reducing corporate tax rates for listed organizations in the upcoming spending plan.
"We are slowly but surely reducing all types of taxes every year. We brought reductions somewhat in last year's spending plan," he said, adding they have plan to slowly but surely reduce taxes, get it individual or corporate.
He was addressing a good virtual press briefing carrying out a pre-budget debate with noted economists.
Experts proposed expanding the size of stimulus packages and extending the associated mortgage repayment periods taking into consideration the pandemic's prevalence, informed the minister.
They also needed inclusion of men and women who cannot yet avail loans under the packages.
"We will inform the primary minister and she'll have a decision," said Kamal.
Meeting sources explained the economists proposed more allocation in medical sector, especially for the betterment of tertiary and mid-level services.
The minister said they have a plan for increasing allocations for the health and agriculture sectors and for steps to make sure quality service in the former.
Regarding methods enabling legalising black funds, the economists explained those discouraged persons who duly and regularly shell out taxes, informed the minister.
He said there is no such thing seeing as black money since it was just funds not declared for some reason.
"There are two problems in tax evasion and avoidance. Evasion is usually a crime and if someone evades having to pay taxes, we are able to bring them to e book," he said.
And if somebody uses some benefits from the legal framework, it isn't a criminal offense rather avoidance is, reasoned the minister, adding that avoidance was first acceptable, not evasion.
"We have to stop the options that create undeclared money. It cannot be done in a day but we shall be able to stop it slowly but surely," he said.
Atiur Rahman, former governor of Bangladesh Lender, said a lot of things were being done for individuals who take loans plus they were even getting usage of the stimulus packages.
But there is nothing done for those who deposit money, he said.
Sources stated eminent economist Prof Rehman Sobhan raised doubts above whether recommendations taken at such pre-funds discussions from authorities were taken into cognisance.
He said these were by no means informed whether their views or recommendations were taken into consideration through the formulation of the spending budget.
Financing Secretary Abdur Rouf Talukder said later on they might inform the economists which of their tips have been incorporated.
The secretary also urged the discussants to send them their suggestions in written form.
