Terming value-added tax regressive, rights activists on Tuesday demanded withdrawal of VAT on essential commodities and services to relieve the poor of the burden of tax.
They said that the existing VAT rate in the country was very high compared with that of the developed countries.
At a press conference at the National Press Club in the city, EquityBD and seven other organisations also demanded the government emphasise direct tax like income tax.
‘The government always prefers indirect tax like VAT as it is easy to collect without much effort but VAT mostly affect the poorer groups in the society,’ said EquityBD chief Rezaul Karim Chowdhury.
At present about 70 per cent of the country’s revenue come from indirect tax while direct tax (personal and corporate taxes) is the major source of government revenue in the developed countries and in many neighbouring countries as well, he said.
The country has more than 22,000 people with bank accounts having more than Tk 1 crore each, but only around 1,000 of them pay taxes. So, there is a big scope to realise more direct taxes, he said.
EquityBD secretary Syed Aminul Haque, Online Knowledge Society representative Prodip Kumar Roy, Surakkha and Ogragoti Foundation representative Jibonanada Jayanto, among others, spoke at the programme.
Representatives of Unnayan Dhara Trust, Jatiya Sramik Jote, Development Synergy Institute, Bangladesh Krishak Federation and VOICE were also present at the press conference.
-With New Age input
