Dearness allowance has no relation to VAT increase: Finance Adviser

Finance Adviser Salehuddin Ahmed has said dearness allowance has no relation to VAT increase. If dearness allowance is given, it will be calculated separately. Bangladesh is the lowest tax paying country. Our tax is lower than LDCs. It is lower than Bhutan, Nepal, Ivory Coast and Burkina Faso. 

He made the remarks while talking to journalists after a meeting of the Food Planning and Supply Committee at the Secretariat on Wednesday (January 22). 

He was accompanied by Food Advisor Ali Imam Majumder.

Finance Adviser Salehuddin Ahmed explained, "It was implemented to boost government revenue and was not influenced by any specific recommendation."

Salehuddin further stated that Bangladesh's low tax revenue compared to other countries necessitates revenue-generating measures. The feasibility of providing certain goods and services at extremely low prices, citing the example of eyeglasses available for only Tk125. 

He urged citizens to understand the need for reasonable taxation.