Thursday, July 27, 2017 | ePaper

Muhith plans to revise budget as govt faces Tk 20,000 cr deficit

  • Print
Staff Reporter :
The Finance Minister AMA Muhith plans to revise the budget 2017-18 year as the government faces revenue deficit about Tk 20000 crore due to suspension of the uniform VAT Act for two years.
Talking to reporters at his secretariat office on Sunday he said, "We have to do it much earlier as many figures in the budget will be changed."
The Parliament has passed the budget of Tk 4.26 lakh crore for the fiscal year 2017-18   with a revenue target of Tk 2.88 lakh crore.
From value-added tax, the government initially targetted to earn more than Tk 91000 crore, a fourth of the total target. Now after deferring the implementation of the VAT law, the government will face a shortfall of Tk 20000 crore.
The government made the VAT law following recommendations by the International Monetary Fund.
Asked whether deferring the implementation of the law will impact the government's relations with the IMF, Muhith said he did not think so.
"We wanted to implement the law in 2016, but could not. We cannot do this time also. But our failure is our own reality. How can it worsen relations with them?" he pointed.
Analysts have suggested alternative tax sources that may help the government tackle the pressure.
Prime Minister Sheikh Hasina said in her closing speech in the Parliament on the budget that the Tk 20000 crores deficit in revenue will have to be overcome somehow.
About managing the looming deficit, Muhith pointed to the target of Tk 85176 crore revenue from income and corporate taxes. "Now these will be the main sources of revenue."
Muhith also said, a committee on savings certificates will sit within a few days to lower interest rates on the debt instruments.
"But the new rates will not harm pensioners and middle- and lower-income groups," he said.
He noted that the National Board of Revenue issued an SRO keeping the tax at source for garments sector at 0.7 percent. Muhith had proposed to raise the tax to one percent, but backtracked on his proposal after garment exporters urged the Prime Minister to keep the previous rate.
"Prices of garments have dropped in the US and Europe. The exporters are facing losses. So we have considered their demand," Muhith said.

More News For this Category

Readmission under paper policy must

The government will complete the readmission process of undocumented Bangladeshi migrants in Italy through fruitful discussion and negotiation with the European Union (EU), officials said.They said the process will be

Govt on hard-line about teachers involved in coaching

M M Jasim  :The government may pursue hard-line against those of the teachers who are engaged in coaching business across the country. No mercy will be shown, the Education

With the recession of waters from the city roads, several potholes, cracks developed, causing sufferings to commuters as vehicles facing difficulties to cross the water-logging area. This photo was taken from Jatrabari area on  Thursday.

With the recession of waters from the city roads, several potholes, cracks developed, causing sufferings to commuters as vehicles facing difficulties to cross the water-logging area. This photo was taken from Jatrabari area on Thursday.

KSA to take 3,000 BD workers this yr

Staff Reporter :Saudi Arabia will take 3,000 Bangladeshi workers of different professions this year.Bangladesh Ambassador in Riyadh, Golam Mosi, said it in a press release after a meeting with the

EC plans to build smart voting system

The Election Commission, is taking steps to use modern equipment at polling centres as part of smart election management.The EC also discussed sending voting supplies to polling centres on the

Draft on judges' code of conduct submitted to CJ

Staff Reporter :The draft of the disciplinary rules and code of conduct for lower court judges was submitted to Chief Justice SK Sinha on Thursday."Law Minister Anisul Huq handed over

Angry mob beat 'thief' to death

UNB, Jhenidah :A suspected thief was killed in a lynch-mob attack at Boro Bamundia village in Kotchandpur upazila of the district early Thursday.The deceased was identified as Faruk 40, son

Siddiqur flown to India for eye treatment

Siddiqur flown to India for eye treatment

Staff Reporter  :Government Titumir College student Siddiqur Rahman, whose eyes were damaged in police action during a demonstration at Shahbagh on July 20, has been flown to India for better

US admiral stands ready to obey a Trump nuclear strike order

AP :The U.S. Pacific Fleet commander said Thursday he would launch a nuclear strike against China next week if President Donald Trump ordered it, and warned against the military ever

BD urged to share 20pc route-maintenance cost with India

Badrul Ahsan :The Protocol on Inland Water Transit and Trade (PIWTT) is on the brink to incorporate new provisions under which Bangladesh has to share 20 per cent of the