The government will introduce electronic account maintenance devices across the country to augment its revenue earnings, Finance Minister AHM Mustafa Kamal said on Thursday.
"Every shop having electricity connection will have these machines. And every eligible businessman will have to pay tax to the government," he told reporters after a meeting with business leaders at the Planning Commission in the city.
"When you (consumers) purchase anything from any shops, please ask the shopkeepers for VAT chalan. It will help curb tax evasion," he added.
Business leaders from different sectors, Prime Minister's Adviser for Private Industry and Investment Salman F Rahman, Bangladesh Bank Governor Fazle Kabir, NBR Chairman Md Mosharraf Hossain Bhuiyan and high government officials attended the meeting.
At the meeting, the finance minister assured the businessmen that the revenue income would be increased without harassing them.
"I have told the businessmen that we will go to you to collect taxes and you will assist us in mobilising revenue for the betterment of the country," Mr Kamal said.
He also said they would have to collect revenue amounting to Tk2.96 trillion, a target set for the current financial year (FY) 2018-19.
"We will listen to your (businessmen) problems. But you have to assist us in collecting revenue and taxes. The government and the private sector will have to march together in a win-win position," the finance minister said.
The National Board of Revenue (NBR) has fallen short of the revenue target by Tk 280 billion in the first half (Jul-Dec) of the current fiscal.
When asked about the new loan write-off provision of the Bangladesh Bank (BB), the finance minister said: "The central bank on Wednesday issued a circular regarding the new policy after discussing the issue with me. It is not the mechanism for reducing the amount of non-performing loans (NPLs)."
"The honest businessmen will receive various facilities but the unscrupulous traders won't get any."
"Recently, I had assured all that the NPLs would not increase any further and the bank would act accordingly to reduce bad loans," Mr Kamal added.
"The NPLs, however, will not decrease much within a shorter period. You will have to allow us six months to one year to notice the outcome of our action, which has already been taken. If the volume of NPLs goes up, the banking sector will be in trouble," he said.
At the meeting, the business leaders placed several demands.
About their demand for 'ease of doing business', the finance minister said the government had already started working to ensure a business-friendly environment, which everybody would see three months later.
About the demand for a cut in the bank interest rates, he assured the businessmen of reducing the present rates for the loans.
"Firstly, we will see the health of the balance sheet of the commercial banks. Then we will work on slashing the interest rates," the minister added.
Meanwhile, President of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) Md Shafiul Islam (Mohiuddin) said they had placed several demands before the finance minister and the PM's adviser for private industry and investment at the meeting.
"We urged them to reduce the interest rate to a single digit, bring down corporate taxes, take steps to avoid double and multiple taxes and ensure ease of doing business and a harassment-free business environment," he said.
"Both the minister and the PM's adviser have assured us of removing the hurdles facing the businesses," he added.
"We want to believe that the government will act now. We want to see tangible progress on these matters," Mr Mohiuddin told reporters after the meeting.
When asked about the VAT rate and the new VAT law, the FBCCI president said the finance minister assured them of introducing a multiple rate system instead of a unified one.
"The government will discuss the issue with us before preparing the taxation system under the VAT law."
He also said since Bangladesh would have to achieve the Sustainable Development Goals (SDGs), higher income status and a developed country status by 2041, private sector-led growth was very important for the country.
