VAT pushing up prices, says AL
Awami League has criticised the imposition of Value Added Tax (VAT) saying it will not generate more revenue but aggravate people's sufferings by pushing prices higher. A resolution adopted at the July 5-6 meeting of its Working Committee said prices of essentials had already shown upward trend but the budget did not suggest anything to increase people's income. This is affecting common men. it said. It will also increase corruption among the unscrupulous businessmen due to lack of efficient tax collecting machinery of the government, it said. Party President Sheikh Hasina presided over the meeting. The Working Committee also resolve that the people of the country, who struggled against the autocratic regime and expected a pro-people budget would be disappointed to see a budget which was nothing but a continuation of the policy of the past regime. The resolutions also suited that after 1975 the military and autocratic regimes in power followed almost similar economic policies, which increased the number of pour. The Awami League Working Committee further said that by reducing the Interest on savings the proposed budget would adversely affect domestic resources mobilisation and investments. The resolutions also added that higher taxes on imports would push the domestic in dustrtal sector to an unhealthy competition. It further said that the proposed, budget has favoured the rich by reducing duties on items used by them. While In-creased taxation on milk powder, edible oil, industrial gas supply. power, paper and other educational instruments would push the poor people below poverty level, the resolution said.
The Awaini League pointed out that In 1974-75 the total debt servicing liabilities was 23 per cent of the total export earnings which shot up to 38.07 per• cent In 1990-91. It said that 86 per cent of the current year's budget was aid dependent which would again increase the debt servicing li-abilities further. The Awami League also pointed out that the Finance Minister in his proposed bud-get had neglected Income generating employment pro-grammes which would aggravate the unemployment situation.
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