The BNP has urged the government to prioritise reducing unnecessary spending, operating costs, and loan allocations to autonomous organisations instead of imposing higher VAT rates.BNP Secretary General Mirza Fakhrul Islam Alamgir made these remarks during a press conference held at the BNP Chairperson's office in Gulshan on Saturday (January 18) morning.Mirza Fakhrul outlined several measures the government could take to reduce expenses and address the fiscal deficit:

Re-evaluating dev projects:

"The government should focus on eliminating unnecessary and financially unreasonable development projects. By doing so, it can reduce spending by approximately 20 percent, saving around Tk 60,000 crore."

Reducing pperating costs:

"By cutting expenses in local government budgets and subsidies, and reducing overall operating costs by 10 percent, the government could save at least Tk 50,000 crore."

Cutting loan allocations to autonomous bodies:

Fakhrul pointed out that Tk 50,875 crore was allocated as loans to autonomous institutions in the 2024-25 fiscal year. Reducing this allocation could yield significant savings.

By implementing these measures, Fakhrul sayed, the government could save up to Tk 1 lakh crore, easing the fiscal deficit while minimising the tax burden on citizens.

Fakhrul emphasised the importance of these steps for economic stability, reducing public financial pressure, and fostering overall economic development: "Reducing government spending will alleviate the tax burden on ordinary citizens, enhance their financial stability, and promote the country's economic growth."

The BNP Secretary General strongly criticised the government’s sudden decision to raise VAT saying, "This decision highlights the severe lack of coordination between the government's monetary policy, fiscal policy, and market management."

He noted that increased taxes on essential items like medicines, LPG, mobile services, restaurant food, and clothing would exacerbate public suffering and escalate inflation.

He attributed the fragile state of the economy to corruption and mismanagement by the Awami League government, stating,

"Relying on higher VAT to cover expenses in such a fragile economy will only worsen the situation for the people."

Call for direct taxation

Fakhrul urged the government to focus on increasing direct taxes rather than indirect taxes, which disproportionately affect lower-income groups: "Indirect taxes impact all classes equally, adding to the burden on the lower-income population. The government should explore other avenues for revenue collection while reorganising financial management and reducing expenditure."

Iterating BNP’s willingness to cooperate with the interim government, Fakhrul said: "We have always supported efforts to ensure the welfare of the people. Therefore, we urge the government to prioritize public opinion when formulating policies and consider alternative revenue strategies."

BNP Standing Committee Member Amir Khasru Mahmud Chowdhury and Chairperson's Advisor Zabiullah were also present at the press conference.