'A conservative yet ambitious budget'
I would say the size of this year's budget is relatively conservative, compared to the preceding years. In most years, the expenditure stands at around 15-15.5% of the GDP, and the revenue also follows suit.
On a different note, this budget could also be considered a very ambitious one, as the number of Taxpayer Identification Number (TIN) holders is expected to be increased. Having said that, we still have many areas to work on, concerning the tax situation.
Our tax system is still very backdated and we have to make some amendments. The tax rate in our country is already very high. We should try to expand the tax base instead.
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Also, the practice of voluntary tax payment has to be introduced. In many foreign countries, people pay taxes voluntarily. In line with that, we too have to make the tax payment process and the tax rate convenient for the people, so that they come forward to pay taxes spontaneously.
Recently, there have been plans approved to recruit tax agents outside the capital Dhaka, which is definitely an innovative idea. We have to bring in more such ideas.
Dr Zaidi Sattar is the chairman & chief executive of the Policy Research Institute of Bangladesh
