Dhaka, Jan 18 (V7N) — BNP Secretary General Mirza Fakhrul Islam Alamgir has voiced strong concerns over the government's decision to impose new VAT and taxes, stating that it will further exacerbate the plight of the poor and low-income population amid rising inflation. Speaking at a press conference held at the BNP Chairperson's office in Gulshan on Saturday morning, Fakhrul criticised the government for inefficiency and lack of coordination in economic policies.

Fakhrul argued that the additional VAT and taxes, imposed to address the budget deficit and meet IMF conditions, would disproportionately burden the lower-income population. "The imposition of taxes and VAT amid inflation has caused commodity prices to soar beyond the reach of ordinary people," he said. He added that the liquidity crisis in banks has further worsened the economic situation, hindering access to money.

The BNP leader accused the government of failing to manage its monetary and fiscal policies effectively. He warned that the rising costs would discourage business investment, reduce exports, and lead to widespread dissatisfaction. "The government's sudden and poorly planned decision has caused widespread discontent among citizens," he noted.

Fakhrul proposed a shift in revenue collection strategies, urging the government to prioritise direct taxes over indirect ones. He argued that indirect taxes affect all social classes equally, disproportionately burdening the poor.

The BNP leader also highlighted corruption in sectors such as electricity, alleging that unnecessary payments under the guise of capacity charges were adding to the financial strain. "There is a top-heavy administration where funds are being allocated to unnecessary sectors, creating opportunities for corruption," he remarked.

Fakhrul suggested that the government could save significant amounts by revisiting its development and operating budgets. He proposed:

Reducing Development Spending: By eliminating unnecessary and financially unreasonable projects, Fakhrul claimed the government could cut costs by 20%, saving approximately Tk 60,000 crore.

Lowering Operating Expenses: Cutting local government and subsidy sector spending by 10% could save another Tk 50,000 crore.

Scaling Back Autonomous Loans: Temporarily reducing the budget for loans to autonomous institutions could further alleviate financial strain.

BNP Standing Committee member Amir Khasru Mahmud Chowdhury echoed Fakhrul's concerns, warning that the purchasing power of the population is declining and risks pushing more people below the poverty line. "The government should have moved away from its looting budgets and implemented a more people-friendly financial plan," Khasru said.

The BNP leaders called for an immediate restructuring of financial management and urged the government to reduce expenditure instead of imposing additional taxes. They emphasised that fiscal responsibility and anti-corruption measures are essential to resolving the ongoing economic crisis.

END/MSS/AJ