Dhaka, June 25 -- The government's recent decision to raise the advance tax (AT) on commercial imports from 5 to 7.5 per cent, while reducing it for industrial importers, has sparked concern among leading economists - and rightly so.
As highlighted during the post-budget discussion hosted by the Metropolitan Chamber of Commerce and Industry (MCCI) and the Policy Research Institute (PRI), this move, though fiscally motivated, could have adverse consequences for consumers and the broader economy, the New Nation reported on Tuesday.
PRI Chairman Dr Zaidi Sattar rightly warned that while the tax hike may aim to offset VAT evasion, its inflationary side effects should not be ignored.
At a time when the country is only beginning to see a modes...