Staff Reporter :
Bangladesh could raise Tk60,000 crore in the short term by gradually phasing out certain tax exemptions over three to four years, asserted Ahsan H. Mansur, Executive Director of the Policy Research Institute (PRI).
He emphasised the potential for additional revenue of Tk49 lakh crore by 2041 through medium-term financial sector reforms. Conversely, failure to implement comprehensive reforms could lead to a revenue loss of Tk50 lakh crore, he warned.
Speaking at a discussion titled ‘Bangladesh’s Domestic Resource Mobilisation: Imperatives and a Roadmap,’ organised by PRI at a city hotel, Mansur highlighted the urgency of his proposal, stating, “This could be implemented immediately, while other reform measures will take more time to design and implement.”
The context of Mansur’s proposal was discussions on Bangladesh’s complex tariff structure, its impact on exports, and the necessity for export diversification.
He underscored the country’s low tax-GDP ratio, stating, “Currently, the country’s tax-GDP ratio is 7.6 percent, which is the lowest in South Asia. It is close to Somalia or the Democratic Republic of the Congo.”
Disagreeing with this comparison, NBR Chairman Abu Hena Md Rahmatul Muneem remarked, “Everyone enthusiastically says that the tax-GDP ratio in the country is disappointing. But I don’t see it that way. It is not right to compare it with that of Somalia or the Congo. If you compare with those countries, you have to compare all the parameters.”
Muneem emphasised the importance of considering the revenue sources of countries with higher tax-GDP ratios, stating, “The important thing is to look at the source of revenue of those who have a high tax-GDP ratio. For example, the tax-to-GDP ratio in the Maldives is high. Their main source of revenue is the tourism sector. But we do not have such a source.”
Speaking at the discussion, Dhaka Chamber of Commerce and Industry (DCCI) President Ashraf Ahmed emphasised making tax collection easier through automation and reducing direct contact between taxpayers and tax officials.
He also advocated for giving small industries more time to grow before being taxed.
State Minister for Finance Waseqa Ayesha Khan, Advisor to the Prime Minister on Economic Affairs Mashiur Rahman, Federation of Bangladesh Chambers of Commerce and Industries (FBCCI) President Mahbubul Alam, Metropolitan Chamber of Commerce and Industry (MCCI) President Kamran T Rahman, Chattogram Stock Exchange Chairman Asif Ibrahim, former NBR chairman Mohammad Abdul Majid, and former NBR member (VAT policy) Jahangir Hossain, among others, spoke on the occasion.
