Blasting governments decision to keep the provision of whitening black money by paying 15 per cent tax, the Voluntary Consumers Training and Awareness Society (VOCTA) on Tuesday demanded scrapping the undue facility.
VOCTA, a platform of consumers, also demanded that the names of black money holders be published in newspapers.
It demanded preparing a complete list of black money holders.
If the government takes the advice of VOCTA, it would help combating black money and discourage all from keeping black money.
Otherwise, the black money holders would be encouraged by availing of the facility to whitening black money, VOCTA Executive Director Md Khalilur Rahman Sajal said at a news conference replying question.
VOCTA hosted the news conference at National Press Club to brief the media about "How pro-people the proposed budget is?".
Khalilur Rahman Sajal presented the recommendations in his prepared speech. He explained various aspects of the proposed budget.
VOCTA Chairman Professor Dr Hossain Uddin Shekhar, Vice Chairman Sanwar Hossain Nowroz, Directors Mohosinul Karim Lebu, Saidul Abedin Dollar, Mizanur Rahman Talukder, Noorun Nabi and Fazlul Haque were present at the news conference, among others.
VOCTA is vocal for the establishment of consumer rights in Bangladesh for long.
VOCTA gave ten key recommendations to the government to make the proposed budget friendly to consumers and the people.
The recommendations include ensuring proper implementation of monetary policy and fiscal policy to control inflation and adoption of clear guidelines to reduce inflation to 6.5 per cent, a specific outline of the governments initiative to deal with market syndicates, reducing government borrowing from banks to meet budget deficit, crackdown on loan defaulters, and increasing budget allocations to education and health sectors, to develop skilled manpower by improving the quality of education.
It also recommended withdrawing the increased supplementary duty on mobile phone calls and internet services, move away from the provision of whitening black money by paying 15 per cent tax and increasing tax-free income of individuals from Tk 3.5 lakh to Tk 4 lakh.
Khalilur Rahman Sajal said the Tk 797,000 crore budget proposed for 2024-25, with a deficit of Tk 2,51,600 crore and revenue earning of Tk 5,45,400 crore. The proposed budget acknowledges the problem, but lacks the mechanism or direction for a solution, he said.
He said, "The VOCTA has been demanding a consumer-friendly budget with special emphasis on inflation control, employment and income growth. But the proposed budget would prompt unbridled commodity price rise, increase the number of unemployed people, reduce peoples income, action against bank loan defaulters and money laundering. The unrealistic proposed budget gives no importance to consumers.
So, the question remains, how consumer friendly is this budget? However, there are several positive aspects in the proposed budget, which cannot be denied. The size of the budget has been kept down so that the pressure of inflation does not affect the people.
Although not enough, the proposed budget has given some hope to control hyper-inflation. This budget has taken steps to harmonise fiscal, monetary and market-based interest rates, Sajal said, adding that the cancellation of tax-free car imports by MPs is commendable initiative.
Sajal said that some of the measures proposed are not enough to keep inflation at 6.5 per cent.
He said, the countrys food price inflation is much higher than the overall inflation at about 12 per cent. Production and supply should be increased to control food inflation.
But the proposed budget provides no clear direction or measures to free the market from syndicates and no direction to increase food production and supply.
The proposed budget has reduced taxes and VAT on several products. Tax at source on supply of daily commodities has been reduced by 1 per cent. This will give some relief to traders, but we have doubts about how much benefit will be available to the consumers.
Peoples purchasing power is decreasing due to inflation. However, it would not be reasonable to increase charges on mobile phone calls and internet service. Where there should not be any supplementary duty, the reverse has been increased.
It was not well thought out. Increasing the duty and tax on refrigerators, ACs will increase pressure on people with limited income and the middle class.
The facility given in the budget to whiten black money by paying 15 per cent tax is morally and economically unacceptable.
Such a system will further encourage the vicious circle of corruption. Such provision is completely unreasonable and contrary to justice.
Therefore, the VOCTA thinks that the government should withdraw the black money whitening provision by paying15 per cent tax.
The proposed budget seeks to increase allocation to social security sector to Tk 1 lakh 36 thousand 26 crore from Tk 1lakh 26 thousand 272 crore in the outgoing fiscal.
Pension of government officials and employees profit on savings bonds, education scholarships, stipends, free textbook printing are included in this allocation.
The VOCTA feels that it is not reasonable to include pension and profits on savings certificates in the social security sector.
"A tough crackdown on defaulters was expected in the proposed budget. But there is no mention of this in the proposed budget, which disappointed us. This time the allocation of education in the budget is disappointing.
Compared to the last time, 6 thousand crore Taka has been allocated to the education sector, but it reduced in proportion to the GDP.
Education sector did not get due importance in the proposed budget. UNESCO advised to spend 5 to 6 per cent of a countrys GDP on education.
